Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Hologic (NASDAQ: HOLX) and its peers.

The medical devices and supplies industry, particularly those specializing in imaging and diagnostics, operates with a comparatively stable yet capital-intensive business model. Companies in this space benefit from consistent demand driven by the essential nature of diagnostic tools in patient care, as well as recurring revenue streams from consumables, service contracts, and equipment maintenance. However, the industry faces challenges such as significant upfront development costs, stringent regulatory requirements, and pricing pressures from hospitals and healthcare systems, which are increasingly focused on cost containment. Looking ahead, the industry should enjoy tailwinds from advancements in technology, including the integration of artificial intelligence to enhance diagnostic accuracy and workflow efficiency, as well as rising demand for imaging solutions driven by aging populations. On the other hand, headwinds could arise from a rethinking of healthcare costs potentially resulting in reimbursement cuts and slower capital equipment purchasing. Additionally, cybersecurity concerns surrounding connected medical devices could introduce new risks and complexities for manufacturers.

The 4 medical devices & supplies - imaging, diagnostics stocks we track reported a slower Q1. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 1.1% on average since the latest earnings results.

Hologic (NASDAQ: HOLX)

As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic (NASDAQ: HOLX) develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women's health and wellness.

Hologic reported revenues of $1.01 billion, down 1.2% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a slight miss of analysts’ full-year EPS guidance estimates.

“We delivered on our financial commitments in the second quarter,” said Stephen P. MacMillan, the Company’s Chairman, President and Chief Executive Officer.

The stock is up 8.5% since reporting and currently trades at $62.14.

Read our full report on Hologic here, it’s free.

Best Q1: GE HealthCare (NASDAQ: GEHC)

Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ: GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.

GE HealthCare reported revenues of $4.78 billion, up 2.8% year on year, outperforming analysts’ expectations by 2.5%. The business had a satisfactory quarter with a solid beat of analysts’ organic revenue estimates but a significant miss of analysts’ full-year EPS guidance estimates.

GE HealthCare pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems content with the results as the stock is up 4.6% since reporting. It currently trades at $71.20.

Is now the time to buy GE HealthCare? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Lantheus (NASDAQ: LNTH)

Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.

Lantheus reported revenues of $372.8 million, flat year on year, falling short of analysts’ expectations by 1.6%. It was a disappointing quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.

Lantheus delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 27.6% since the results and currently trades at $75.77.

Read our full analysis of Lantheus’s results here.

QuidelOrtho (NASDAQ: QDEL)

Born from the 2022 merger of Quidel and Ortho Clinical Diagnostics, QuidelOrtho (NASDAQ: QDEL) develops and manufactures diagnostic testing solutions for healthcare providers, from rapid point-of-care tests to complex laboratory instruments and systems.

QuidelOrtho reported revenues of $692.8 million, down 2.6% year on year. This number met analysts’ expectations. More broadly, it was a mixed quarter as it also produced an impressive beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates.

QuidelOrtho pulled off the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is up 18.8% since reporting and currently trades at $30.68.

Read our full, actionable report on QuidelOrtho here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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