NEW YORK (GenomeWeb) – Hologic reported after the close of the market Wednesday that revenues for its first quarter of fiscal year 2019 were up 5 percent year over year, driven by strength in its US breast health, global molecular diagnostics, and international businesses.
For the three months ended Dec. 31, 2018, the firm reported revenues of $830.7 million, up from $791.1 million in the prior year and above Wall Street analysts' average estimate of $817.9 million and in line with its preliminary projections.
In diagnostics, Hologic reported fiscal Q1 revenues of $296.6 million, up 4 percent from $284.6 million in the prior-year period. Excluding Hologic's divested blood screening business, diagnostics products revenues rose 4 percent year over year to $282.4 million from $272.0 million.
Within diagnostics, the firm posted molecular diagnostics revenues of $164.3 million, up 11 percent from $148.6 million in fiscal Q1 2018. Blood screening revenues were $14.2 million, up 13 percent from $12.6 million in the prior-year period. Cytology and perinatal revenues were $118.1 million, down 4 percent from $123.4 million in the prior-year quarter.
Hologic Chairman, President, and CEO Steve MacMillan said on a conference call to discuss the firm's financial results that molecular product sales continue to be a growth driver in its diagnostics division.
The catalyst behind Hologic's molecular diagnostics business is its large and growing installed base of fully automated Panther systems and a broad assay menu for mid- to high-volume labs, he said, adding, "We now have more than 15 tests that have been [US Food and Drug Administration]-cleared or CE marked to run on the Panther or Panther Fusion platforms."
Two-thirds of the assays came online from the beginning of 2017, and "strong consistent growth in system utilization as well as sales" are the results of combining the new assays with Hologic's "ability to partner with customers to drive demand and establish categories, such as sexual and reproductive health," MacMillan said.
In fiscal Q1, as was the case for 10 of the past 11 quarters, the firm's international molecular diagnostics revenues grew at a double-digit rate.
The firm continues to place more Panthers and drive increased utilization by encouraging customers to consolidate testing on the system, MacMillan said.
In the first quarter, strong sales of its new quantitative viral load tests and legacy women's health assays for human papillomavirus, trichomoniasis, and chlamydia-gonorrhea drove revenue growth, he said, noting that just last week the firm announced that the FDA granted de novo clearance that permits marketing of its Aptima assay for Mycoplasma genitalium sexually transmitted infection in men and women.
In other business segments, breast health revenues rose 13 percent to $324.7 million from $288 million; medical aesthetics revenues dropped 13 percent to $79.8 million from $91.3 million. Gyn/surgical revenues inched up less than 1 percent to $108.4 million compared to $107.5 million; and skeletal health revenues rose 8 percent to $21.2 million from $19.7 million.
The firm reported net income of $98.6 million, or $.36 per share, compared to $406.7 million, or $1.45 per share, in the prior-year quarter. Its adjusted EPS was $.58 and beat the analysts' consensus estimate of $.57. Net income in year-ago period included a net tax benefit of $329.2 million as a result of changes to US tax legislation.
Hologic spent $53.2 million on R&D in fiscal Q1 2019, down 3 percent from $54.8 million in Q1 2018. Its SG&A expenses were $224.6 million, up 3 percent from $217.4 million in fiscal Q1 2018.
Hologic reported cash and cash equivalents of $311.1 million as of Dec. 31, 2018.
The company increased its guidance for full-year fiscal 2019 to between $3.31 billion and $3.34 billion in revenues, which would represent an increase of 2.7 percent to 3.6 percent year over year. It had previously guided to revenues of between $3.29 billion and $3.34 billion.
The firm anticipates EPS for full-year 2019 to be in the range of $1.39 to $1.43, up from its previous guidance of $1.33 to $1.37
Adjusted EPS is expected to be in the range of $2.39 to $2.43. Prior adjusted EPS guidance was for a range of between $2.38 and $2.42.
Hologic guided to revenues of $795 million to $810 million, and EPS of between $.28 and $.30 for fiscal Q2 2019. Adjusted Q2 EPS is projected to be in the range of $.55 to $.57.
In early morning trade on the Nasdaq, Hologic's shares were down more than 1 percent to $44.49.