Yesterday, mid cap women's health stock Hologic, Inc (NASDAQ: HOLX) fell more than 10% after disappointing Wall Street on earnings, meaning it might be time to take a look at it and small cap women's health stocks The Female Health Company (NASDAQ: FHCO) and TherapeuticsMD Inc (NYSEMKT: TXMD) because after all, women account for half the population and these three small caps are all focused on the women's health:
Hologic, Inc. A leading developer, manufacturer and supplier of premium diagnostic products, medical imaging systems, and surgical products, Hologic, Inc has an emphasis on serving the healthcare needs of women throughout the world. On Monday after the market closed, Hologic, Inc announced that fiscal fourth quarter revenues increased 5.7% to $622.1 million along with a 9.4% increase in non-GAAP net income to $107.6 million and a net loss of $1.1 billion verses a net loss of $77.8 million as the company determined that goodwill within its Diagnostics business segment was impaired. Weak demand for the ThinPrep pap tests, the mammography system 2D Selenia and the heavy menstruation surgical solution NovaSure impacted the top line. Given the deterioration of the ThinPrep and NovaSure lines, which are Hologic, Inc's most profitable businesses, analysts range from being skeptical or at least more realistic about the company's prospects with a Jefferies report saying:
"While a cut to guidance was expected, and even welcome given the recent string of disappointing results, the complexion of what Hologic offered was far from comforting. While this outlook could simply be conservatism, the company still has a lot of work to do to do to win back investor confidence."
Nevertheless, there was some good news for the quarter as Hologic, Inc did improve its balance sheet with refinancing under better terms and authorized the repurchase of up to $250 million in common stock over the next three years. On Tuesday, small cap Hologic, Inc fell 10.43% to $20.51 (HOLX has a 52 week trading range of $18.45 to $23.96 a share) for a market cap of $5.55 billion plus the stock is up 2.5% since the start of the year and up 220.5% over the past five years.
The Female Health Company. The manufacturer, marketer and seller of the FC2 female condom, The Female Health Company's product is the only one of its kind approved by the FDA and provides dual protection against unintended pregnancy and sexually transmitted infections. The FC2 Female Condom is available in the United States and about 138 countries around the world. Last August, The Female Health Company reported that net revenues decreased 16% to $7.3 million, unit sales declined 17%, average FC2 unit price increased 2%, the cash balance rose 125% to $11.9 million and net income of $726,911. The Chairman reiterated:
"As noted in previous press releases, timing issues regarding the receipt of orders can significantly impact the Company's quarterly operating results, positively or negatively, illustrating the difficulty of providing specific revenue and operating income guidance."
The Chairman also reiterated that unit sales of female condoms (FC1 and FC2) have grown at a compound average annual rate of 23.7% over the last seven full fiscal years in spite of periods of quarterly fluctuations. The Female Health Company is next scheduled to report earnings on December 2nd and it should be noted that the company as a forward dividend of $0.28 for a 3.10% forward dividend. On Tuesday, small cap The Female Health Company rose 1.72% to $8.87 (FHCO has a 52 week trading range of $6.30 to $10.21 a share) for a market cap of $254.43 million plus the stock is up 23.5% since the start of the year and up 95.8% over the past five years.
TherapeuticsMD Inc. A specialty pharmaceutical company focused on creating safe and effective branded prescription, generic prescription and over-the-counter (non-prescription) products targeted exclusively for women, TherapeuticsMD Inc is focused on the development and commercialization of three advanced hormone replacement products designed to alleviate the symptoms of and reduce the health risks resulting from menopause-related hormone deficiencies. Earlier this month, TherapeuticsMD Inc reported that net revenues had increased to $2.3 million verses $1.0 million for the third quarter of 2012 while the net loss also increased to $7.7 million from $4.3 million as R&D expenses increased to $4.1 million from $1.7 million (due to costs incurred in the development of new hormone replacement therapy and prescription prenatal products) plus sales, general and administrative expenses increased to $4.8 million from $2.9 million. Nevertheless and back in September, TherapeuticsMD announced an underwritten offering of 13,750,000 shares priced at $2.40 per share with gross proceeds of approximately $33 million for enough cash to see the company through at least another year. On Tuesday, small cap TherapeuticsMD Inc rose 0.48% to $4.15 (TXMD has a 52 week trading range of $1.25 to $5.27 a share) for a market cap of $601.60 million plus the stock is up 33.9% since the start of the year and down 91.7% over the past five years.
Best Low Price Companies To Buy For 2014
Finally, here is a look at the long term charts for all three small cap women's health stocks:
As you can see from the above chart, The Female Health Company along with Hologic, Inc have both given investors since the financial crisis decent albeit bumpy returns while TherapeuticsMD Inc has not been a good bet for investors (although its most recent technical chart is looking more bullish).
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