Hologic Must Make The Third Time A Charm
By Stephen Simpson:Big deals understandably make investors nervous, but when the buyer in question already has a record and reputation for overpaying in deals and failing to reap all of the promised benefits, it's so much the worse. That's the burden on Hologic (HOLX) now that it has announced a very large, and almost certainly transformative, acquisition of diagnostics company Gen-Probe (GPRO). But as Hologic's own second quarter earnings suggest, the company needed another avenue of growth and Gen-Probe just may fit the bill.
Q2 Results Just Okay
At the risk of burying the lede, Hologic's fiscal second quarter earnings do explain the interest in Gen-Probe. While every operating unit saw year-on-year growth, total company growth was just 7%, lead by nearly 10% growth in diagnostics and 8% growth in GYN Surgical. Though the company continues to make progress selling its new tomo mammography product, overall breast health revenue grew about 6%.Complete Story »