Midday Commentary: Hologic adds outright after earnings; JDS Uniphase reports disappointing results

By Rebecca Melvin

New York, May 1 - Hologic Inc.'s two convertible bonds gained in outright trade early Thursday as shares of the Bedford, Mass.-based medical diagnostics company added 8% following its fiscal second-quarter earnings, revenue beat estimates and full-year guidance was raised.

Hologic was trading and JDS Uniphase Corp. was in focus after their earnings reports, but the convertibles market was quiet in general, market players said.

Hologic's 2% convertibles due 2042 traded at 105.487, and the 2% convertibles due 2037 added more than 4 points outright to 117, according to Trace data. Meanwhile, Hologic shares were up $1.80, or 8.6%, at $22.78 at 11 a.m. ET.

Hologic reported a net loss, but earnings excluding items were $103.1 million, or 37 cents per share, which was up 10% from the year-earlier period and better than the estimate of 33 cents per share. Revenue grew 2% to $625 million.

Hologic also raised its full-year earnings guidance to a range of $1.37 per share to $1.40 per share, compared to previous guidance of $1.34 to $1.38 per share, and raised revenue guidance to $2.46 billion to $2.49 billion for the year, up from $2.425 billion to $2.475 billion. Its strong report was attributed to revenue gains in key product lines such as 3D mammography and Aptima HPV.

JDS Uniphase was in focus, but its 0.625% convertibles due 2033 weren't seen to have traded as shares of the Milpitas, Calif.-based networking equipment company fell 11% on an earnings miss and forward guidance for the fourth quarter that was below consensus estimates, a New York-based trader said.

Elsewhere, Heartware International Inc. saw its 3.5% convertibles due 2017 trade at 121.55 after the Framingham, Mass.-based medical device company reported earnings that sent its common stock up $9.04, or 10.6%, to $94.00 in the early going.

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