Hologic sees continued revenue growth, bonds move up; Atlas falls despite earnings beat

By Stephanie N. Rotondo

Phoenix, July 30 – More earnings announcements were pushing around convertible bonds in Thursday trading.

Hologic Inc.’s 0% convertible notes due 2043 were trading actively as the session began, with one trader placing the notes at 125.

The issue becomes callable in 2017, he said, and parity is 108.

As for the stock, it was up $2.72, or 7.15%, at $40.75.

Hologic reported its fiscal third-quarter results after the close on Wednesday, showing a 10% gain in revenue – the third consecutive quarter of revenue growth.

As such, the company also upped its revenue guidance for the year.

For the quarter, revenue came to $693.9 million, up from $632.6 million the year before.

The figure also beat expectations of $654 million.

Profit was $29.4 million, or 10 cents per share. That compared to a profit of $11.3 million, or 4 cents per share, the previous year. On an adjusted basis, earnings per share was 43 cents, better than Wall Street expectations of 39 cents.

For the fiscal fourth quarter, Hologic estimated revenue would be between $685 million and $695 million, with adjusted earnings of 41 cents to 42 cents.

For fiscal 2015, revenue guidance was upped to $2.69 billion to $2.7 billion, compared to previous forecasts of $2.6 billion to $2.62 billion.

Atlas ‘down in line’

In other earnings news, Atlas Air Worldwide Holdings Inc.’s 2.25% convertible bonds due 2022 – a $200 million issue that priced in May – were moving “down in line,” a trader reported.

The trader saw the issue “trading 96.875 and 97 [versus] $51.64 on 70 and 65 deltas.”

The weakness came even as the Purchase, N.Y.-based company reported quarterly results that beat estimates.

Net profit for the second quarter was $28.4 million, or $1.13 per share. On an adjusted basis, earnings per share was $1.17.

Analysts polled by Zacks Investment had predicted adjusted earnings per share of $1.08.

Revenue was $455.8 million.

Peabody improves

Away from earnings, Peabody Energy Corp.’s 4.75% convertible notes due 2066 were ticking higher, according to a trader

He quoted the issue at 11.25 bid, 11.5 offered, up from 10.75 previously.

The stock also traded higher, moving up 4 cents, or 3.28%, to $1.26.

The upward momentum came despite reports that sector peer Alpha Natural Resources Inc. – which has a 3.25% convertible bond issue maturing on Saturday – was preparing to file for bankruptcy as soon as Monday. Additionally, Arch Coal Inc. reported its quarterly results, which showed a loss.

Mentioned in this article:

Atlas Air Worldwide Holdings Inc. Nasdaq: AAWW

Hologic Inc. Nasdaq: HOLX

Peabody Energy Corp. NYSE: BTU

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