Hologic sees drop in sales and tariff impact on stock price
Hologic released its second quarter fiscal year 2025 earnings report May 1, which saw a drop in sales for its mammography imaging systems and projected impacts from tariffs in the forthcoming quarter.
U.S. and retaliatory foreign tariffs are expected to impact revenue later in 2025. The company issued a guidance on future financial expectations for Q3 2025, with an expected drop in revenue of between 2.5% to 3.5%.
“We are maintaining our full-year revenue guidance, but lowering our non-generally accepted accounting principles (GAAP) earnings per share (EPS) guidance slightly based on tariffs and geopolitical conditions,” said Karleen Oberton, Hologic’s chief financial officer.
Tariffs may already be having an impact on Hologic's bottom line. Its breast health segment revenue in the quarter was $356.2 million, a total decrease of 7.4%. This includes both breast imaging and interventional breast solutions business segments.
Hologic said breast imaging saw a decrease of $34.8 million from last quarter's high of $306.7 million, down to $271.9 million. There was a reported 10.9% decrease in U.S. sales, and 12.9% in internationals sales. The company said the decrease was primarily driven by lower sales of mammography capital equipment.
But this was partially offset by increased service contract revenue from recently acquired Endomagnetics, purchased last August for about $310 million. The U.K.-based vendor develops breast cancer surgery technologies. Hologic said the company complements its existing portfolio and will provide surgeons and radiologists with an expanded range of options for patients undergoing breast cancer procedures. Key among its technologies are breast surgery localization and lymphatic tracing technologies, including a marker for magnetic tissue localization before surgery, and a lymphatic tracing injectable for breast cancer staging.
Hologic stock price drops with each round of new tariffs
Hologic's stock price is at its lowest point since the start of the COVID-19 pandemic, which was $31 a share in the spring of 2020. As of May 1, the price was $57.28, which is down from a high in November of $83.72. The stock price has had a gradual decline since then, with noticeable drops in value seen in February, March and April following each new tariff announcement.
The stock price dropped more than $9 a share in the days following the Feb. 6 Trump administration announcement of new tariffs against China, Mexico and Canada.
Following the March 10 announcement that China was implementing retaliatory tariffs on some U.S. goods, Hologic's stock fell again by nearly $5 per share. The stock dropped again by nearly another $5 per share in the days following Trump's April 2 "Liberation Day" round of tariffs against most nations, including key trading partners.
This pattern of stock price drops after tariff announcements the past few months were also seen with several other key radiology imaging vendor stocks.
Dave Fornell has covered healthcare for more than 17 years, with a focus in cardiology and radiology. Fornell is a 5-time winner of a Jesse H. Neal Award, the most prestigious editorial honors in the field of specialized journalism. The wins included best technical content, best use of social media and best COVID-19 coverage. Fornell was also a three-time Neal finalist for best range of work by a single author. He produces more than 100 editorial videos each year, most of them interviews with key opinion leaders in medicine. He also writes technical articles, covers key trends, conducts video hospital site visits, and is very involved with social media. E-mail: [email protected]