Hologic stock drops after Q2 earnings miss estimate

Photo | Grant Welker Hologic's Marlborough headquarters

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By Sam Bonacci

Hologic saw massive revenue growth in the second quarter of the year, but the company’s earnings per share missed the expected mark and sent the firm’s stock tumbling nearly 8% since the earnings report Wednesday afternoon.

The Marlborough medical device manufacturer reported second quarter revenue of $1.538 billion, accounting for 103.7% growth over the previous year’s quarter, according to a release put out Wednesday. The firm also posted earnings per share of $2.59, up a massive 354% from the second quarter of 2020.

Its profits for the quarter were $619 million, up from $95 million in the second quarter of 2020.

However, these figures still managed to miss the mark for the company that has built upon the success of its COVID-19 tests in the last year to great effect with multiple takeovers and wild earnings growth. The company was 1.15% off the Zacks Consensus Estimate of $2.62, prompting stock to take a plunge of just under 7.8% on the Nasdaq from the time of the announcement to the publication of this article on Thursday afternoon

Cash flow from operations was $552.3 million in the second quarter. In addition to the company’s acquisitions, it used this cash flow to repurchase 1.6 million shares of its common stock for $120 million in the second quarter, according to a release from the company.