Hologic’s Mixed Q2 Performance and Revised Earnings Guidance Lead to Hold Rating

Needham analyst Michael Matson has maintained their neutral stance on HOLX stock, giving a Hold rating today.

Michael Matson’s rating is based on several factors impacting Hologic’s performance. The company’s revenue and earnings per share for the second quarter of fiscal year 2025 slightly exceeded market expectations. However, while the revenue guidance for the full year remained unchanged, the earnings guidance was revised downward due to the financial impact of tariffs, estimated to cost the company $20-25 million per quarter.
Additionally, Hologic experienced a slowdown in its organic sales growth, excluding COVID-related sales, which decreased from 0.8% year-over-year in the first quarter to a negative 0.7% in the second quarter. This decline was primarily attributed to weaker growth in the Breast Health segment. Despite an improvement in the gross margin, the operating margin saw a decline. Given these mixed results and the anticipated gradual improvement in growth throughout the year, Matson has maintained a Hold rating on the stock.

Matson covers the Healthcare sector, focusing on stocks such as Atricure, Boston Scientific, and TransMedics Group. According to TipRanks, Matson has an average return of -9.5% and a 33.94% success rate on recommended stocks.

In another report released today, RBC Capital also maintained a Hold rating on the stock with a $70.00 price target.