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Interpreting Hologic (HOLX) International Revenue Trends

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Have you assessed how the international operations of Hologic (HOLX - Free Report) performed in the quarter ended June 2025? For this medical device maker, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

While delving into HOLX's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

The company's total revenue for the quarter amounted to $1.02 billion, marking an increase of 1.2% from the year-ago quarter. We will next turn our attention to dissecting HOLX's international revenue to get a clearer picture of how significant its operations are outside its main base.

Unveiling Trends in HOLX's International Revenues

During the quarter, Europe contributed $148.1 million in revenue, making up 14.5% of the total revenue. When compared to the consensus estimate of $140.09 million, this meant a surprise of +5.72%. Looking back, Europe contributed $146.5 million, or 14.6%, in the previous quarter, and $127.9 million, or 12.7%, in the same quarter of the previous year.

Asia-Pacific accounted for 5.9% of the company's total revenue during the quarter, translating to $60.3 million. Revenues from this region represented a surprise of -1.57%, with Wall Street analysts collectively expecting $61.26 million. When compared to the preceding quarter and the same quarter in the previous year, Asia-Pacific contributed $59.7 million (5.9%) and $65 million (6.4%) to the total revenue, respectively.

Rest of World generated $54.7 million in revenues for the company in the last quarter, constituting 5.3% of the total. This represented a surprise of +1.48% compared to the $53.9 million projected by Wall Street analysts. Comparatively, in the previous quarter, Rest of World accounted for $54.2 million (5.4%), and in the year-ago quarter, it contributed $53.2 million (5.3%) to the total revenue.

Revenue Forecasts for the International Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Hologic will post revenues of $1.03 billion, which reflects an increase of 4.5% the same quarter in the previous year. The revenue contributions are expected to be 14.4% from Europe ($148.11 million), 6% from Asia-Pacific ($61.5 million) and 5.4% from Rest of World ($55.55 million).

For the entire year, the company's total revenue is forecasted to be $4.08 billion, which is an improvement of 1.2% from the previous year. The revenue contributions from different regions are expected as follows: Europe will contribute 14.3% ($583.6 million), Asia-Pacific 5.9% ($242.26 million) and Rest of World 5.4% ($218.85 million) to the total revenue.

Key Takeaways

Relying on international markets for revenues, Hologic faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

At present, Hologic holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Exploring Recent Trends in Stock Price

The stock has witnessed an increase of 3.7% over the past month versus the Zacks S&P 500 composite's an increase of 0.6%. In the same interval, the Zacks Medical sector, to which Hologic belongs, has registered a decrease of 3.8%. Over the past three months, the company's shares saw an increase of 18.3%, while the S&P 500 increased by 11.7%. In comparison, the sector experienced a decline of 3.4% during this timeframe.


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