HOLX - Embedded Expectations Analysis - 2021 09 13
Hologic, Inc. (HOLX:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 21.0x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may have concerns about brand momentum, their acquisition integration, and Panther placements.Specifically, management may lack confidence in their ability to capitalize on MyoSure's strong momentum and growth, as well as on the rapidly growing market for acute care near-patient testing. Moreover, they may have concerns about the pace of recovery of their core Diagnostics business, the potential of their Biotheranostics acquisition, and the progress of their breast health business integration. Furthermore, management may lack confidence in their ability to hit their revenue growth rate assumptions and capitalize on their installed base of Panther instruments. Finally, they may lack confidence in their ability to improve operating income, and they may be exaggerating the robustness of their GYN surgical products pipeline.
Hologic is a developer, manufacturer and supplier of diagnostics products, medical imaging systems, surgical products and light-based aesthetic and medical treatment systems. The company's segments are: Diagnostics, which provides diagnostic products which are used to aid in the diagnosis of human diseases; Breast Health, which provides solutions for breast cancer care for radiology, pathology and surgery; Medical Aesthetics, which provides aesthetic treatment systems, including SculpSure, PicoSure and MonaLisa Touch; GYN Surgical, which includes NovaSure Endometrial Ablation System to treat abnormal uterine bleeding; and Skeletal Health, which includes the Horizon DXA, a dual energy x-ray system.
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