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| Information Source: Hologic, Inc |
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Revenue of $1,023.8 Million Exceeds Guidance
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Company Reports GAAP Diluted EPS of $0.86; Non-GAAP Diluted EPS of $1.08 Exceeds Guidance.
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In Fourth Quarter, Company Remains on Track for Solid Revenue Growth and Faster Non-GAAP EPS Growth
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| Hologic, Inc. (Nasdaq: HOLX) announced today the Company’s financial results for the fiscal third quarter ended June 28, 2025. |
| “We are pleased to have delivered revenue and non-GAAP earnings growth in the third quarter that exceeded our guidance ranges,” said Stephen P. MacMillan, the Company’s Chairman, President and Chief Executive Officer. “And we made great progress toward returning to better top and bottom-line growth in the fourth quarter, driven by the continued rebound of our Breast Health business and solid performances by our other divisions.” |
| Recent Highlights |
- Revenue of $1,023.8 million increased 1.2% for the quarter, or 0.4% in constant currency. This compares to the guidance range of $1,000 to $1,010 million that the Company provided in early May.
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- Total organic revenue excluding COVID-19, the divested blood screening and SSI businesses, and the acquired Endomagnetics and Gynesonics businesses decreased (0.8%), or (1.7%) on a constant currency basis.
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- GAAP diluted EPS of $0.86 for the quarter increased 4.9%. Non-GAAP EPS of $1.08 increased 1.9% and exceeded the high-end of the guidance range of $1.04 to $1.07 that the Company provided in early May.
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- Diagnostics revenue of $448.9 million increased 1.8%, or 0.9% in constant currency, primarily driven by higher molecular diagnostics sales, partially offset by lower sales of COVID-19 assays.
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- Excluding COVID-19 revenue, organic diagnostics sales grew 3.9%, or 2.9% on a constant currency basis.
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- Molecular diagnostics revenue increased 3.2%, or 2.4% in constant currency, primarily driven by higher sales of the Company’s BV CV/TV and Panther Fusion assays.
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- Excluding COVID-19 revenue, molecular diagnostics revenue grew 6.0%, or 5.2% on a constant currency basis. This included 7.3% growth in the United States.
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- Breast Health revenue of $365.2 million decreased (5.1%), or (5.8%) in constant currency, primarily driven by lower sales of mammography capital equipment, as expected. This decline was partially offset by the inclusion of Endomagnetics revenue and increased service contract revenue.
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- Organic breast health revenue, which excludes sales from the divested SSI and acquired Endomagnetics businesses, decreased (10.1%, or 10.8%)in constant currency.
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- Surgical revenue of $178.4 million grew 7.1%, or 6.3% in constant currency, primarily driven by the acquired Gynesonics business and strong international sales.
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- Organic surgical revenue, which excludes sales from Gynesonics, increased 2.0%, or 1.2% in constant currency.
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- Cash flow from operations was a strong $343.2 million in the third quarter.
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- The Company refinanced its term loan and revolving credit facility in July. The facility now comprises a $1.17 billion term loan and a $1.25 billion revolver, and matures in July 2030.
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| Other Financial Highlights |
- U.S. revenue of $760.7 million decreased (0.6%). International revenue of $263.1 million increased 6.9%, or 3.5% in constant currency.
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- GAAP gross margin of 56.3% increased 90 basis points primarily due to lower impairment charges. Non-GAAP gross margin of 60.3% decreased (80) basis points primarily due to product mix and increased reserves.
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- GAAP operating margin of 24.9% increased 80 basis points primarily due to lower impairment charges. Non-GAAP operating margin of 30.1% decreased (110) basis points, primarily due to the expected margin dilution from the inclusion of Endomagnetics and Gynesonics results.
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- GAAP net income of $194.9 million was flat to the prior year, while non-GAAP net income of $244.1 million decreased (2.6%. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) were $340.9 million, an increase of 0.7%.
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- COVID-19 revenue, which consisted of COVID-19 assay revenue of $6.5 million and other COVID-19-related revenue of $25.0 million, decreased (17.1%, or 17.8%)in constant currency.
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- The Company repurchased 0.7 million shares for $36 million in the third quarter of fiscal 2025.
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- The Company ended the quarter with cash and cash equivalents of $1.74 billion and an adjusted net leverage ratio (net debt over adjusted EBITDA) of 0.6 times. In addition, the Company had short-term investments of $144 million.
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- Adjusted Return on Invested Capital (ROIC) was 13.9%, a decrease of 2 basis points compared to the prior year period.
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| Financial Guidance for the Fourth Quarter and Full Fiscal Year 2025 |
| “Building on our solid third-quarter performance, in the fourth quarter we continue to expect mid-single-digit growth in organic, constant currency revenue excluding COVID,” said Karleen Oberton, Hologic’s Chief Financial Officer. “We also forecast non-GAAP earnings per share will grow faster than revenue, helped in part by our tariff mitigation efforts.” |
| Hologic’s financial guidance for the fourth quarter and full year 2025 is shown in the table below. The guidance is based on a full-year non-GAAP tax rate of approximately 19.25% and diluted shares outstanding of approximately 228 million for the full year. Constant currency guidance assumes that foreign exchange rates are the same in fiscal 2025 as in fiscal 2024. Organic revenue guidance for fiscal 2025 is in constant currency and excludes the divested blood screening and SSI ultrasound imaging businesses. Revenue from acquired businesses is generally included in organic revenue guidance starting a year after the acquisition. In fiscal 2025, revenue from the acquired Endomagnetics business becomes organic in August. Revenue from the acquired Gynesonics business will be excluded from organic revenue for all of fiscal 2025. Organic revenue excluding COVID-19 is in constant currency and is organic revenue excluding COVID-19 assay revenue and COVID-19-related revenue. |
| For the full document, click the link below |
| Hologic, Inc |
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