Hologic, Inc.

This is our first report on Hologic, Inc., a renowned medical technology giant focused on women’s health. The company had a strong quarter, with good top-line performance and managed an all-around beat. Diagnostics expanded by 15.8%, driven mostly by Molecular Diagnostics’ 24.5% growth. Surgical also turned in a strong quarter, with organic growth of 14.7%. However, Breast Health lost 5.2%, indicating that its recovery from supply chain headwinds caused by chips is in progress. Even without the extra days, Diagnostics and Surgical experienced double-digit growth, and Breast Health outperformed initial projections, while the extra days provided over 250 basis points of growth net. In Diagnostics, they maintained top positions in key product categories for women’s health, like STIs and cervical cancer. Their Women’s Health molecular diagnostics and cytology basis enable sustainable growth, foster beneficial connections with leading labs and key opinion leaders, and open the door for further innovative products. We initiate coverage on the stock of Hologic, Inc. with a ‘Hold’ rating.