HOLX - Hologic drops after earnings beat as analysts trim price targets

Health equipment maker Hologic (NASDAQ:HOLX) is trading lower for the six straight session in morning hoursThursday despite reporting better than expected financials for 2Q fiscal 2022. Revenue for the quarter reached ~$1.4B to exceed forecasts by $150M even after ~7% YoY decline, and the company attributed the revenue contraction to lower sales of COVID-19 assays. Meanwhile, organic revenue excluding COVID-19 revenue slipped ~2% YoY on a constant currency basis amid Omicron-driven impact early in the quarter, while semiconductor chip shortages affected the Breast Health division. However, the management raised the full-year revenue and EPS guidance to stand in line with the consensus. Commenting on the results, many Wall Street analysts have cut their price targets on Hologic (HOLX), citing COVID impact on the core business. While Omicron testing upside drove better-than-expected revenue and earnings as anticipated, “COVID headwinds, alongside gantry chip shortages, impact base business performance,” Morgan Stanley analysts led by

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Hologic drops after earnings beat as analysts trim price targets