Hologic, Inc. (Nasdaq: HOLX) has announced its financial results for the fiscal third quarter ending June 29, 2024.
“We delivered another strong financial performance in Q3 2024, marked by sequential improvements in our operating margin and robust cash flow,” said Stephen P. MacMillan, Chairman, President, and CEO. “This quarter, we returned to top-line growth and exceeded our guidance for both revenue and earnings. Our results reflect the continued strength across our Diagnostics (excluding COVID-19), Breast Health, and Surgical segments. We are positioned to end fiscal 2024 on a strong note as we focus on long-term growth.”
Recent Highlights:
- Revenue reached $1,011.4 million, a 2.7% increase from the previous year, or 3.1% in constant currency, driven by higher sales in Molecular Diagnostics, Breast Imaging, and Surgical.
- Organic revenue, excluding COVID-19, grew 5.5% (5.8% in constant currency).
- Diagnostics revenue rose 0.3% (0.7% in constant currency), with growth in Molecular Diagnostics partially offset by decreased COVID-19 assay sales.
- Molecular Diagnostics revenue increased 2.8% (3.1% in constant currency), with a 10.5% increase excluding COVID-19.
- Breast Health revenue climbed 6.9% (7.1% in constant currency), driven by strong sales of gantries and services.
- Surgical revenue grew 5.9% (6.2% in constant currency) due to robust sales of MyoSure and Fluent Fluid Management products.
- Cash flow from operations was strong at $405.7 million.
- Hologic repurchased 1.4 million shares for $100 million.
- The company closed the acquisition of Endomagnetics on July 25, 2024, which specializes in breast surgery localization and lymphatic tracing technologies.
Key Financial Metrics for Q3:
| Metric | GAAP | Non-GAAP |
|---|---|---|
| Revenues | $1,011.4 million | $1,011.4 million |
| Gross Margin | 55.4% | 61.1% |
| Operating Expenses | $316.3 million | $302.8 million |
| Operating Margin | 24.1% | 31.2% |
| Net Margin | 19.2% | 24.8% |
| Diluted EPS | $0.82 | $1.06 |
- GAAP gross margin increased 1,810 basis points to 55.4%, and non-GAAP gross margin rose 30 basis points to 61.1%.
- Operating margin improved to 24.1% (GAAP) and 31.2% (non-GAAP).
- Net income surged 580.2% to $194.5 million (GAAP) and 8.4% to $250.7 million (non-GAAP).
- Adjusted EBITDA increased 8.5% to $338.5 million.
- COVID-19 related revenue declined 30.4% in constant currency.
- Total principal debt was $2.56 billion, with cash and equivalents at $2.4 billion, and an adjusted net leverage ratio of 0.1 times.
- Adjusted Return on Invested Capital (ROIC) was 14.1%, down 10 basis points year-over-year.
Financial Guidance for Q4 and Full-Year Fiscal 2024:
“Hologic’s Q3 performance highlights our ability to leverage our strong Diagnostics base and the resurgence in Breast Health,” said Karleen Oberton, Chief Financial Officer. “We expect to close fiscal 2024 on a high note.”
Guidance:
| Metric | Fiscal 2024 Guidance | Previous Guidance |
|---|---|---|
| Revenue | $4,012 – $4,027 million | $4,000 – $4,050 million |
| GAAP EPS | $3.37 – $3.44 | $3.45 – $3.55 |
| Non-GAAP EPS | $4.04 – $4.11 | $4.02 – $4.12 |
| Q4 Revenue | $970 – $985 million | – |
| Q4 GAAP EPS | $0.80 – $0.87 | – |
| Q4 Non-GAAP EPS | $0.97 – $1.04 | – |
Note: Fiscal 2024 includes four fewer selling days compared to fiscal 2023, estimated to impact revenue by over 100 basis points. Guidance incorporates Q3 performance, the addition of Endomagnetics, and the temporary halt of Horizon DXA systems due to non-conformance issues.
