Why did HOLX's Q1 2025 EPS barely beat expectations?

The EPS of Hologic in Q1 2025 beat expectations with a slight increase of 5.1% year-over-year, reaching $1.03, surpassing the forecast of $1.01. However, the following factors may have influenced the minimal surprise in the EPS result:

1. **Revenue Mix and Growth**: While the company's diagnostics segment showed strong growth, with a 5.1% increase in revenues, the breast health segment experienced a decline of 2.3%. This mixed performance across segments might have dampened the overall EPS surprise.
2. **International Business Challenges**: Hologic's international revenues grew by 1.7% year-over-year, but constant currency revenues increased by 1.0%. This suggests that currency fluctuations or specific market conditions in international markets might have impacted the company's financial performance, affecting the overall EPS surprise.
3. **Cost Factors**: The company faced challenges such as slower sales of mammography capital equipment and the impact of USAID funding halt and tariffs. These factors could have put pressure on the company's margins, thereby minimizing the EPS surprise.

In summary, while Hologic's Q1 2025 EPS beat expectations with a slight increase, the minimal surprise can be attributed to a combination of factors including revenue mix and growth, international business challenges, and cost factors.