Analyst Note| Debbie S. Wang |
While Hologic’s fiscal third-quarter results reflected a dramatic shift thanks to the pandemic receding in the U.S., we found little that was surprising, and the firm generally looks on track to meet our full-year expectations. As such, we’re leaving our fair value estimate unchanged. Narrow-moat Hologic, on net, has been a prime beneficiary of COVID-19 with growth in its molecular diagnostics business soaring by leaps and bounds through the first fiscal quarter 2021, which more than offset deep declines in its breast health unit. However, the slowdown in COVID-19 PCR testing made an emphatic appearance in the fiscal second quarter, and even considerable gains in the breast health division were unable to fully compensate.