Hologic came in with mixed results in its latest reported earnings. The Marlborough, MA-based company beat expectations in revenue and met consensus on earnings per share. However, Hologic had to lower revenue guidance for fiscal year 2020.

The plan to lower the revenue guidance is a direct result of Hologic divesting its Cynosure medical aesthetics business. Cynosure was sold to an affiliate of investment funds managed by Clayton, Dubilier & Rice for $205 million, but Hologic acquired the company for $1.65 billion.

Guidance for 2020 was lowered $3.238 billion to $3.268 billion from $3.45 billion to $3.5 billion. Consensus for fiscal year 2020 is $3.237 billion.

Hologic had growth in its diagnostics, breast health, and GYN surgical businesses. Mike Matson, an analyst with Needham & Company said noted the diagnostics and breast health businesses could play significant roles in Hologic’s growth opportunities.

Diagnostics growth excluding Blood Screening improved slightly to 6.5% from 6.1% in F4Q19. Strong SSI performance drove 2.4% growth in Breast Health (down from 7.1% in F4Q19) and sales were $331 million, just above consensus of $330 million. GYN Surgical grew 10.2% (up from 7.3% in F4Q19) and sales were $119 million. Consensus was $112 million.

“We expect Hologic’s Diagnostics and Breast Health businesses to continue to drive mid-single-digit revenue growth given new products, tuck-in acquisitions, and software upgrades,” Matson wrote in a research note. “And leverage and operating efficiencies should support modest margin expansion to drive high single-digit or better earnings growth.”

During the company’s earnings call, Steve MacMillan, Hologic’s CEO noted that tuck-in acquisitions could be in the company’s future.

“The efforts we have made over the last few years to strengthen capabilities and accelerate growth are paying off across the company, and we are supplementing these efforts with smart capital deployment that is focused on tuck-in acquisitions and share buybacks,” MacMillan said, according to a Seeking Alpha transcript of the call.

The statements echo what MacMillan said earlier this month during the 38th annual J.P. Morgan Healthcare Conference when he noted the company was done with huge deals like Cynosure.