Hologic shares rise in falling market after company raises revenue forecast

Hologic Inc. shares HOLX,
-1.52%
rose 2.3% on Monday in a declining market, after the medical technology company raised its revenue guidance for the first quarter. Hologic, based in Marlborough, Mass., Said it now expects revenue of around $ 1.471 billion, up from a range of $ 1.100 billion to $ 1.150 billion offered in November. “We expect to report a very strong start to fiscal 2022 across the board, with first quarter revenue well above our expectations,” Managing Director Steve MacMillan said in a statement. The diagnostics division was boosted by demand for COVID-19 testing, while its breast and skeletal health and surgery businesses all grew by more than 8%, he said. “In total, we estimate organic growth excluding COVID earnings of 9.0% in constant currencies for our first quarter, compared to our long-term growth target of 5% to 7%,” he added. The company expects adjusted earnings per share to be “significantly higher” than the $ 1.15 to $ 1.25 forecast offered in November. The FactSet consensus is for EPS of $ 1.26 and revenue of $ 1.159 billion. “While we believe the strong F1Q22 results were widely expected given the increase in COVID cases, we are encouraged by the continued strong growth in HOLX’s core business,” wrote Needham analyst Mike Matson, in a note to clients. Matson has said he will wait until the actual earnings – expected Feb. 2 – before updating his model. The analyst rates the stock as an expectation. Stocks have fallen 11.6% in the past 12 months, while the S&P 500 SPX,
+ 0.92%
won 20%.