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NEW YORK (TheStreet) -- Hologic (HOLX) - Get Free Report was gaining 4.8% to $22.00 after-hours Wednesday after beating analysts' estimates for earnings and revenue in the fiscal second quarter.

For the second quarter Hologic reported earnings of 37 cents a share, beating the Capital IQ Consensus Estimate of 33 cents a share by 4 cents. Revenue grew 2% to $625 million, beating analysts' estimates of $609.35 million for the quarter.

"Second quarter results reflect early progress towards our renewed focus on executional discipline as we drive to our goal of sustainable organic growth," president and CEO Stephen MacMillan said in a press release. "Our key product lines, such as Hologic's unique 3D mammography and Aptima HPV, gained momentum during the quarter."

Looking forward to the fiscal third quarter the Hologic expects revenue of between $615 million and $625 million, and EPS of 33 cents to 34 cents a share.

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TheStreet Ratings team rates HOLOGIC INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate HOLOGIC INC (HOLX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The gross profit margin for HOLOGIC INC is rather high; currently it is at 66.49%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.87% is in-line with the industry average.
  • HOLX, with its decline in revenue, slightly underperformed the industry average of 3.1%. Since the same quarter one year prior, revenues slightly dropped by 5.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • In its most recent trading session, HOLX has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, HOLOGIC INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income has significantly decreased by 271.6% when compared to the same quarter one year ago, falling from $3.12 million to -$5.35 million.
  • You can view the full analysis from the report here: HOLX Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.