Q4 Earnings Outperformers: Hologic (NASDAQ:HOLX) And The Rest Of The Medical Devices & Supplies – Imaging, Diagnostics Stocks
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how medical devices & supplies – imaging, diagnostics stocks fared in Q4, starting with Hologic (NASDAQ:HOLX).
The medical devices and supplies industry, particularly those specializing in imaging and diagnostics, operates with a comparatively stable yet capital-intensive business model. Companies in this space benefit from consistent demand driven by the essential nature of diagnostic tools in patient care, as well as recurring revenue streams from consumables, service contracts, and equipment maintenance. However, the industry faces challenges such as significant upfront development costs, stringent regulatory requirements, and pricing pressures from hospitals and healthcare systems, which are increasingly focused on cost containment. Looking ahead, the industry should enjoy tailwinds from advancements in technology, including the integration of artificial intelligence to enhance diagnostic accuracy and workflow efficiency, as well as rising demand for imaging solutions driven by aging populations. On the other hand, headwinds could arise from a rethinking of healthcare costs potentially resulting in reimbursement cuts and slower capital equipment purchasing. Additionally, cybersecurity concerns surrounding connected medical devices could introduce new risks and complexities for manufacturers.
The 4 medical devices & supplies – imaging, diagnostics stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.1% since the latest earnings results.
As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic (NASDAQ:HOLX) develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women’s health and wellness.
Hologic reported revenues of $1.02 billion, flat year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with revenue guidance for next quarter meeting analysts’ expectations.
“Our financial results for the first quarter of 2025 were consistent with our guidance overall,” said Stephen P. MacMillan, the Company’s Chairman, President and Chief Executive Officer.
Hologic Total Revenue
Hologic achieved the highest full-year guidance raise but had the weakest performance against analyst estimates of the whole group. Still, the market seems discontent with the results. The stock is down 25.2% since reporting and currently trades at $59.
Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ:GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.
GE HealthCare reported revenues of $5.32 billion, up 2.2% year on year, in line with analysts’ expectations. The business had a satisfactory quarter with a solid beat of analysts’ EPS estimates but organic revenue in line with analysts’ estimates.
GE HealthCare Total Revenue
The stock is down 25.2% since reporting. It currently trades at $64.19.
Born from the 2022 merger of Quidel and Ortho Clinical Diagnostics, QuidelOrtho (NASDAQ:QDEL) develops and manufactures diagnostic testing solutions for healthcare providers, from rapid point-of-care tests to complex laboratory instruments and systems.
QuidelOrtho reported revenues of $707.8 million, down 4.7% year on year, exceeding analysts’ expectations by 1.4%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.
QuidelOrtho delivered the slowest revenue growth in the group. As expected, the stock is down 29.8% since the results and currently trades at $28.05.
Pioneering the “Find, Fight and Follow” approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.
Lantheus reported revenues of $391.1 million, up 10.5% year on year. This number surpassed analysts’ expectations by 3.8%. Zooming out, it was a mixed quarter as it also logged a decent beat of analysts’ full-year EPS guidance estimates.
Lantheus scored the biggest analyst estimates beat and fastest revenue growth, but had the weakest full-year guidance update among its peers. The stock is up 21.4% since reporting and currently trades at $97.21.
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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