Hologic Reports Preliminary Revenue Results for Q1 Fiscal 2025
Hologic, Inc. (Nasdaq: HOLX), a global leader in women’s health and diagnostic solutions, today announced its preliminary revenue results for the first quarter of fiscal 2025, which ended on December 28, 2024. Despite facing challenges from the strengthening U.S. dollar, which impacted the revenue outlook, the company’s performance came in line with its guidance on a constant currency basis.
Hologic’s preliminary total revenues for Q1 fiscal 2025 are expected to be approximately $1.021 billion, reflecting a 0.9% increase compared to the same period in fiscal 2024, or a 1.0% increase on a constant currency basis. The company’s leadership expressed confidence that earnings per share (EPS) for both GAAP and non-GAAP will be near the high end of its guidance ranges for the quarter, demonstrating solid financial discipline and operational strength.
“Our fiscal Q1 revenue finished in line with our expectations, adjusted for the impact of currency fluctuations,” said Karleen Oberton, Chief Financial Officer of Hologic. “The strengthening of the U.S. dollar reduced our revenue by approximately $9 million compared to our guidance in early November. Despite this headwind, we expect our GAAP and non-GAAP earnings per share to be at the high end of our guidance ranges.”
The company’s revenue performance for Q1 was driven by its continued success in diagnostics, even as some of its other divisions, such as breast health and skeletal health, faced challenges.
Global Revenue by Division
Hologic provided a detailed breakdown of its global revenues by division for the first quarter of fiscal 2025. Here is a summary of performance across the company’s primary segments:
1. Diagnostics Division
- Reported Revenue: $470.6 million
- Q1’24 Revenue: $447.8 million
- Reported Change: 5.1%
- Constant Currency Change: 5.2%
The diagnostics division performed robustly in the first quarter, with revenues increasing by more than 5% compared to Q1 2024. Organic revenue, excluding COVID-19-related sales, grew significantly by 9.0%, totaling $422.9 million. This continued growth reflects Hologic’s strong presence in diagnostic testing and its ability to meet increasing demand for non-COVID-19 diagnostic solutions. The division benefitted from increased sales in several key areas, notably its molecular diagnostics and non-COVID-19 assays, further positioning the company for long-term growth beyond the pandemic.
2. Breast Health Division
- Reported Revenue: $369.1 million
- Q1’24 Revenue: $377.7 million
- Reported Change: (2.3%)
- Constant Currency Change: (2.1%)
The breast health division saw a slight decline in revenue of 2.3% compared to the same period in fiscal 2024. The drop was driven primarily by decreased demand for certain products. However, when adjusting for the sale of SSI (Surgical Site Infection) prevention products and Endomagnetics, the organic revenue excluding these items showed a decline of 5.9%. Hologic continues to face some challenges in this area, including increased competition and market volatility, but remains focused on strengthening its offerings in breast cancer screening and related technologies.
3. GYN Surgical Division
- Reported Revenue: $166.3 million
- Q1’24 Revenue: $162.2 million
- Reported Change: 2.5%
- Constant Currency Change: 2.5%
The GYN surgical division showed steady performance, with a 2.5% increase in reported revenue. This growth reflects strong demand for Hologic’s products aimed at improving women’s health, including offerings in minimally invasive procedures and gynecologic surgeries. Hologic’s leadership in this space has contributed to its success in maintaining a solid revenue base within this division.
4. Skeletal Health Division
- Reported Revenue: $15.8 million
- Q1’24 Revenue: $25.4 million
- Reported Change: (37.8%)
- Constant Currency Change: (37.4%)
Skeletal health experienced a significant decline in revenue, with a 37.8% drop compared to the first quarter of fiscal 2024. This downturn was attributed to a slowdown in demand for related products, possibly due to changes in healthcare provider focus or economic factors impacting the adoption of new technologies. Hologic will likely look to adjust its strategy in this segment moving forward, focusing on innovation and finding ways to reverse the negative trend.
Organic Revenue Performance
Hologic’s organic revenue for Q1 fiscal 2025, which excludes the impact of COVID-19 and one-time revenues, totaled $1.003 billion, a slight decrease of 0.1% compared to the same quarter last year. However, organic revenue excluding COVID-19-related sales grew by 0.7%, with $959.6 million in revenues. This indicates that despite some challenges in specific areas, Hologic’s core business is performing well, particularly within diagnostics and gynecological surgical products.
