Whether a woman benefits from the screening depends of factors such as age and family history.
The debate over when and how often a woman should begin screening continues. Five years ago, women in the U.S. started annual testing at age 40. The U.S. Preventative Services Task Force stated later that the evidence suggests that women could wait until age 50 and get screened every other year.
Adding to the uncertainty was a long-term Canadian study that found that yearly mammograms did not reduce the chance of a woman would die of breast cancer and confirmed that many detected abnormalities would not have been fatal if left untreated.
Hologic (HOLX) expects FQ2 revenue of $605M-$615M; the $610M midpoint is favorable to a $606.5M consensus. The company is only reaffirming its FY14 (ends Sep. '14) revenue guidance, but has slightly raised its EPS guidance to $1.34-$1.38 from $1.32-$1.38 (consensus is at $1.36).
FQ1 Diagnostics sales -6.6% Y/Y to $285.8M, Breast Health +2.6% to $226.5M, GYN Surgical -2.5% to $78.9M, Skeletal Health -10.1% to $21.3M.
Sales/marketing spend fell 12% Y/Y to $83.3M and R&D spend fell 5% to $48.7M, but G&A spend rose 25% to $67.8M.
CEO Stephen MacMillan says Hologic will be focused on improving its "operating performance and growth profile" in 2014, as well as paying down debt; the company had $4.3B in debt at the end of 2013, and $449M in cash/equivalents.
"New management may need to reinvest in the business to drive strategic growth initiatives, but any strategy is likely a journey not a sprint," Morgan Stanley says, regarding the outlook for Hologic (HOLX -2.4%) going forward.
Analyst David Lewis says his "SOTP analysis suggests portfolio optimization may not be the quick fix some investors expect and [it could be a] longer road to value creation.”
Relational Investors reports a 7.3% active stake in Hologic (HOLX +0.7%).
Relational believes the shares trade "at a discount to fair value," a state of affairs they attribute to "subpar operational execution and a history of deploying capital to over-priced acquisitions." (13D)
For more on the changes taking place at HOLX, see here.
"We think MacMillan was well-regarded during his time as CEO at Stryker given a track record of execution and managing expectations and note that he has experience in each of the major markets in which [the company] operates," Needham's Mike Matson says, maintaining a Buy rating on shares of Hologic (HOLX -1%) amid an executive and board shakeup.
Although Matson still sees a lot of "heavy lifting" in the company's future, his price target is $26, representing upside of ~18% from current levels.
See also: HOLX names new CEO, appoints Icahn reps to board
Hologic (HOLX -1.1%) appoints former Stryker chief Steve MacMillan CEO. MacMillan will succeed Jack Cumming. (PR)
"During his tenure, Steve led Stryker to strong operating performance, including nearly tripling revenue, and delivered stock price appreciation that significantly outperformed the S&P 500," HOLX notes.
Meanwhile, the company is also appointing Jonathan Christodoro and Samuel Merksamer to the board — they are both managing directors at Icahn Capital. (PR)