Hologic Q1 Earnings Beat, Stock Falls on Dismal '25 Sales Guidance

Hologic, Inc. HOLX reported adjusted earnings per share (EPS) of $1.03 in the first quarter of fiscal 2025, up 5.1% year over year. The metric surpassed the Zacks Consensus Estimate by 0.9%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The adjustments include charges and benefits related to the amortization of acquired intangible assets, restructuring and integration/consolidation costs and many others. The company’s GAAP EPS was 87 cents in the quarter compared with $1.03 in the year-ago period.Revenues totaled $1.02 billion in the quarter, up 0.9% year over year (up 1% at the constant exchange rate or CER). Meanwhile, the top line came in line with the Zacks Consensus Estimate.Following the earnings announcement, HOLX shares plunged 1.3% in yesterday’s after-hours session.HOLX’s Q1 Revenues by RegionIn the fiscal first quarter, U.S. revenues totaled $757.9 million, an increase of 0.6% year over year. This topped our model’s projection of $769 million.International revenues amounted to $263.9 million, up 1.7% year over year and up 2.1% at CER. Our model’s projection was $257.8 million.HOLX’s Segmental Breakdown of Q1 RevenuesDiagnosticsRevenues in the segment increased 5.1% year over year (up 5.2% at CER) to $470.6 million in the quarter under review. Excluding COVID-19 revenues, Diagnostics revenues increased 9% on a reported basis. This compares with our model’s segmental projection of $455.2 million.Within the division, Cytology & Perinatal revenues of $125.4 million rose 4.7% at CER. This compares with our model’s segmental projection of $122.7 million.Hologic, Inc. Price, Consensus and EPS Surprise Hologic, Inc. price-consensus-eps-surprise-chart | Hologic, Inc. QuoteMolecular Diagnostics revenues of $341.1 million increased 6.7% at CER. Our model’s projection was $327.6 million.Blood Screening revenues of $4.1 million fell 48.8% year over year at CER. Our model forecast for the business was $5 million.Breast HealthThe segment’s revenues decreased 2.3% from the year-ago period (down 2.1% at CER) to $369.1 million due to the lower sales of mammography capital equipment. Our model projected revenues of $392.6 million for this segment.Excluding the divested SSI and acquired Endomagnetics businesses, Breast Health revenues decreased 5.9% or 5.8% year over year at constant currency.GYN SurgicalThe business reported a 2.5% year-over-year (same at CER) increase in revenues to $166.3 million. Our model projected revenues of $164.5 million in this segment.Skeletal HealthRevenues declined 37.8% year over year (down 37.4% at CER) to $15.8 million. Our model projected revenues of $14.4 million for this segment.Hologic’s Operational UpdateIn the fiscal first quarter, the company-provided adjusted gross margin increased 80 basis points (bps) to 61.6% due to a favorable product mix.The company’s adjusted operating margin was 29.4%, an expansion of 90 bps, primarily due to a higher gross margin.HOLX’s Financial UpdateHologic ended the first quarter of fiscal 2025 with cash and cash equivalents of $1.78 billion compared with $2.16 billion at the end of fiscal 2024 fourth quarter.  Total long-term debt (including the current portion) was $2.53 billion compared with $2.50 billion at the fourth-quarter end.Net cash provided by operating activities at the end of the fiscal first quarter was $189.3 million compared with $220 million a year ago.Hologic Updates Full-Year Guidance, Shares Q2 ViewFor fiscal 2025, the company projects revenues in the band of $4.05-$4.10 billion (previously $4.15-$4.20 billion), up 0.5%-1.7% (earlier 3%-4.2%) year over year. Growth at CER is now projected at 1.3%-2.5% and (0.2%)-1% organically. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $4.16 billion.Hologic continues to expect fiscal 2025 adjusted EPS in the range of $4.25-$4.35, with projected growth of 4.2-6.6% year over year. The Zacks Consensus Estimate for the same is pegged at $4.28 per share.For the second quarter of fiscal 2025, the company forecasts revenues between $995 million and $1.01 billion, suggesting year-over-year declines of 2.2%-1.3% as reported, 1.3%-0.3% at CER and 2.9%-1.9% organically. The Zacks Consensus Estimate for the metric is pegged at $1.04 billion.Adjusted EPS for the second quarter is estimated between $1.00 and $1.03, which implies a 2.9% decrease to flat growth year over year. The Zacks Consensus Estimate for the metric currently stands at $1.05.Our Take on HOLXHologic ended the fiscal 2025 first quarter with earnings beating and revenues matching estimates. The Diagnostics arm gained from a robust Molecular performance, driven by the Biotheranostics lab testing business and BV CV/TV assay. The International Surgical business was also strong in the quarter and generated optimism for more expansion with the addition of Gynesonics last month. Additionally, the increase in both margins bodes well for the stock.Meanwhile, Hologic’s Breast Health segment suffered from reduced capital equipment sales. This, along with currency headwinds, has overshadowed strength in the company’s U.S. diagnostics business, leading to a lowered revenue guidance for fiscal 2025. The Skeletal Health business revenues, too, declined due to delayed shipments of some Horizon DXA units. HOLX’s Zacks Rank and Key PicksHologic currently has a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader medical space are ResMed RMD, Cardinal Health CAH and Bio-Rad Laboratories BIO.ResMed reported second-quarter fiscal 2025 adjusted EPS of $2.43, which topped the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion exceeded the Zacks Consensus Estimate by 1.6%. RMD carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.Cardinal Health, carrying a Zacks Rank #2, posted second-quarter fiscal 2025 adjusted EPS of $1.93, topping the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion exceeded the Zacks Consensus Estimate by 0.7%.CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.Bio-Rad Laboratories, carrying a Zacks Rank #2, posted third-quarter 2024 adjusted EPS of $2.01, topping the Zacks Consensus Estimate by 57%. Revenues of $649.7 million exceeded the Zacks Consensus Estimate by 2%.BIO has an earnings yield of 3.3% compared with the industry’s 0.6% yield. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 30.5%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cardinal Health, Inc. (CAH): Free Stock Analysis Report ResMed Inc. (RMD): Free Stock Analysis Report Hologic, Inc. (HOLX): Free Stock Analysis Report Bio-Rad Laboratories, Inc. (BIO): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks