Hologic Q4 Earnings Lag, Revenues Top, Stock Down in Aftermarket

Hologic, Inc. HOLX reported adjusted earnings per share (EPS) of $1.01 in the fourth quarter of fiscal 2024, up 13.5% year over year. However, the bottom line missed the Zacks Consensus Estimate by 0.9%.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 76 cents in the quarter compared with 37 cents in the year-ago period.Fiscal 2024 adjusted EPS was $4.08, up 3% from fiscal 2023.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Following the announcement, HOLX’s shares plunged nearly 2.6% in the after-hours trading yesterday.HOLX’s Q4 and Fiscal 2024 RevenuesRevenues totaled $987.9 million in the quarter, up 4.5% year over year (up 4.2% at the constant exchange rate or CER). The metric surpassed the Zacks Consensus Estimate by 0.9%.Fiscal 2024 revenues of $4.03 billion were nearly consistent with the fiscal 2023.Geographical Analysis of HOLX's Q4 Revenues In the fiscal fourth quarter, U.S. revenues totaled $745.6 million, up 4.2% year over year. This was above our model’s projection of $736.9 million.International revenues amounted to $242.3 million, up 5.4% year over year and up 4.3% at CER. Our model’s projection was $244.4 million.Hologic, Inc. Price, Consensus and EPS Surprise Hologic, Inc. price-consensus-eps-surprise-chart | Hologic, Inc. QuoteHOLX’s Segmental Breakdown of Q4 RevenuesDiagnosticsRevenues in the segment increased 6.5% year over year (up 6.2% at CER) to $443.3 million in the quarter under review. Excluding COVID-19 revenues, Diagnostics revenues increased 9.5% on a reported basis. This compares with our model’s segmental projection of $438.5 million.Within the division, Cytology & Perinatal revenues of $116.5 million rose 0.7% at CER. This compares with our model’s segmental projection of $117.6 million.Molecular Diagnostics revenues of $319.3 million increased 9.1% at CER. Our model’s projection was $303 million.Blood Screening revenues of $7.5 million fell 19.4% year over year at CER. Our model forecast for the business was $8.5 million.Breast HealthThe segment’s revenues increased 6.4% from the year-ago period’s (up 6.2% at CER) levels to $375.5 million, driven by strong Breast Imaging Service revenues and the addition of Endomagnetics.Our model projected revenues of $368.5 million for this segment. Excluding SSI and Endomagnetics, Breast Health revenues increased 5.6%, or 5.3% year over year at constant currency.GYN SurgicalThe business reported a 5.7% year-over-year (up 5.4% at CER) increase in revenues to $156.5 million, led by the core MyoSure and the platform's complementary Fluent fluid management system. Our model projected revenues of $155.3 million in this segment.Skeletal HealthRevenues declined 54.6% year over year (down 54.9% at CER) to $12.7 million. Our model projected revenues of $28.4 million for this segment.Hologic’s Operational UpdateIn the fiscal fourth quarter, the company-provided adjusted gross margin increased 110 basis points (bps) to 61.5%, due to an increase in sales compared with the prior year period.The company’s adjusted operating margin was 28.3%, an expansion of 170 bps, due to higher revenues and improved operating leverage compared with the prior year period.HOLX’s Financial UpdateHologic ended the fourth quarter of fiscal 2024 with cash and cash equivalents of $2.16 billion compared with $2.72 billion at the fiscal 2023 end.Total long-term debt (including the current portion) was $2.50 billion, down from $2.82 billion in fiscal 2023.Net cash provided by operating activities at the end of the fiscal fourth quarter was $1.29 billion compared with $1.05 billion a year ago.Hologic’s Outlook for Fiscal 2025 and Q1Hologic’s revised guidance includes the financial results of the Endomagnetics acquisition for the full year but does not include any contribution from the Gynesonics acquisition. There is no year-over-year net selling day impact comparing 2025 to 2024. Additionally, the guidance incorporates the expected impact from the ongoing temporary stop-ship of Horizon DXA systems in Skeletal Health.Fiscal 2025 revenues are projected to be $4.15-$4.20 billion, indicating year-over-year growth of 3-4% on a reported basis, 2.3-3.5% at CER and 3.4-4.7% organically. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $4.23 billion.Adjusted EPS for fiscal 2025 is anticipated at $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 $4.36 per share.For first-quarter fiscal 2025, the company projects revenues between $1.025 billion and $1.035 billion.  This indicates year-over-year growth of 1.2-2.2% on a reported basis, 0.4-1.4% at CER and 1.8-2.8% organically. The Zacks Consensus Estimate for the metric is pegged at $1.05 billion.Adjusted EPS for the first quarter is estimated between $1.00 and $1.03, which implies an increase of 2-5.1% year over year. The Zacks Consensus Estimate for the metric is pegged at $1.04 per share.Our Take on HOLXHologic ended the fiscal fourth-quarter of 2024 with earnings missing estimates but revenues beating the same. Diagnostics revenue growth was driven by higher Molecular Diagnostics sales, powered by the BV/CV/TV assay, Biotheranostics business and also the four-plex COVID/FluA/B/RSV respiratory assay.The Breast Health division’s growth was also backed by contributions from the gantry business and interventional products. Hologic’s international surgical business continues to drive strong broad-based performance, as it expands access to the technologies into new markets. Additionally, the expansion of both the margins in the quarter is highly encouraging.Meanwhile, headwinds from Horizon DXA temporary stop ship persisted, negatively impacting the Skeletal Health revenues. The company expects to resume shipping during the latter half of the first quarter of fiscal 2025.HOLX’s Zacks Rank and Key PicksHologic currently has a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader medical space are Quest Diagnostics DGX, Intuitive Surgical ISRG and Boston Scientific Corporation BSX.Quest Diagnostics reported third-quarter 2024 adjusted earnings of $2.30 per share, which topped the Zacks Consensus Estimate by 1.8%. Revenues of $2.49 billion beat the consensus mark by 3.4%. DGX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.DGX’s 2024 earnings are expected to surge 2.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.3%.Intuitive Surgical, currently carrying a Zacks Rank #2, posted a third-quarter 2024 EPS of $1.84, topping the Zacks Consensus Estimate by 11.5%. Revenues of $2.04 billion surpassed the Zacks Consensus Estimate by 1.2%.ISRG has an estimated 2024 earnings growth rate of 20.1% compared with the industry’s 13.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.9%.Boston Scientific Corporation, currently carrying a Zacks Rank #2, reported third-quarter 2024 adjusted earnings of 63 cents per share, which surpassed the Zacks Consensus Estimate by 8.6%. Revenues of $4.21 billion topped the Zacks Consensus Estimate by 4.5%.BSX has an estimated 2024 earnings growth rate of 17.6% compared with the industry’s 11.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.2%.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Boston Scientific Corporation (BSX): Free Stock Analysis Report Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report Hologic, Inc. (HOLX): 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