Skip to main content
Premium Trial:

Request an Annual Quote

Hologic Q3 Revenues Grow 3 Percent, Firm Raises Guidance

NEW YORK – Hologic said after the close of the market on Wednesday that its revenues grew 3 percent year over year during its fiscal third quarter, with diagnostics revenues increasing 4 percent.

For the recently completed quarter, Hologic posted $852.4 million in total revenues compared to $824 million in the year-ago period. It beat the consensus Wall Street estimate of $835.7 million.

Its diagnostics revenues totaled $305.4 million, up from $294.2 million. Within the division, molecular diagnostics revenues grew 11 percent to $170.9 million from $154.5 million, while cytology & perinatal was down nearly 1 percent to $120.3 million from $121.1 million.

On a on a conference call to discuss the earnings, Hologic CEO Steve MacMillan said that molecular diagnostics remains the growth driver in diagnostics and attributed this to the firm's R&D team, as well as the "sophistication" of the firm's lab and physician-based sales teams. He noted Hologic has obtained US regulatory clearances in each of the past 11 consecutive quarters.

MacMillan added that after several years of significant changes in Hologic's R&D capabilities, the firm is seeing an impact on financials, with sales of recently launched products totaling more than $180 million in the quarter, representing 40 percent growth compared to a year ago, or 21 percent of total revenue.

Molecular growth was "broad-based in the quarter," MacMillan also said, as customers consolidated testing on Hologic's large installed base of fully automated Panther instruments. Specifically, sales of the Aptima women's health assays for chlamydia, gonorrhea, HPV, and trichomonas all increased solidly, he said, and sales of new diagnostics products also more than doubled in the quarter led by Hologic's quantitative viral load tests and by Panther Fusion.

Also with the diagnostics division, blood screening revenues dipped 24 percent year over year to $14.2 million from $18.6 million. Hologic divested its stake in blood screening firm Grifols for $1.85 billion in early 2017.

Among the company's other divisions, total breast health revenues increased 6 percent to $325.4 million from $307.9 million. Total medical aesthetics revenues declined 7 percent to $85 million from $91.7 million, and total GYN surgical rose 4 percent to $112.2 from $107.7 million. Skeletal health increased 8 percent to $24.4 million from $22.5 million.

Hologic increased its R&D spending nearly 13 percent to $61.4 million from $54.4 million but decreased its SG&A spending approximately 2 percent to $223.5 million from $227.4 million.

The firm posted a profit of $93.9 million, or $.35 per share, for Q3 2019, compared to a profit of $112.9 million, or $.41 per share, a year ago. Adjusted EPS for the recently completed quarter was $.63 per share, beating the analyst's average estimate of $.61 per share.

Hologic finished Q3 with $427.9 million in cash and cash equivalents.

For fiscal Q4, the firm is guiding to a revenue increase of 2.5 percent to 4.4 percent year over year, translating to revenues of between $834 million and $849 million. EPS is anticipated to be between $.39 and $.41. Adjusted EPS is expected to be between $.64 and $.66.

Hologic revised its full-year guidance for 2019. Full-year 2019 revenues are now anticipated to grow between 3.6 percent and 4.1 percent to a range between $3.34 billion to $3.35 billion. Adjusted EPS is expected to be in the range of $2.42 and $2.44.

The firm had previously guided to full-year revenues of $3.33 billion to $3.35 billion, with EPS between $.06 and $.09, and adjusted EPS of $2.41 to $2.44.

Shares of Hologic were down approximately 1 percent to $50.61 in Thursday morning trading on the Nasdaq.