The Good Brigade In February, I believed that shares of Hologic, Inc. (NASDAQ:HOLX) were starting to look a bit more attractive as headwinds were disappearing. The women's health business benefited greatly from the pandemic (through its diagnostics business) yet the subsequent headwinds are ending in 2024. This improves the prospects for growth as appeal was slowly emerging, with year-over-year growth appearing in the coming quarters. All this looks quite compelling amidst a strong balance sheet, solid trac ...

Did you analyze how Hologic (HOLX) fared in its international operations for the quarter ending March 2024? Given the widespread global presence of this medical device maker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential fo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-36214 __________________________________________________________ HOLOG ...

[Q2 FY2024 Financial Highlights](index=1&type=section&id=Q2%20FY2024%20Financial%20Highlights) Hologic's Q2 FY2024 performance exceeded guidance, with strong organic growth in Diagnostics (ex-COVID) and Surgical divisions offsetting a slight overall revenue decline due to lower COVID-19 assay sales [Overall Performance Summary](index=1&type=section&id=Overall%20Performance%20Summary) Hologic reported Q2 fiscal 2024 revenue of $1,017.8 million and non-GAAP diluted EPS of $1.03, exceeding its guidance, driven by strong organic revenue growth of 4.9% (in constant currency) when excluding COVID-19 impacts - Revenue of **$1,017.8 million** and Non-GAAP Diluted EPS of **$1.03** both exceeded the high-end of the company's guidance[1](index=1&type=chunk)[2](index=2&type=chunk) Q2 FY2024 Key Financial Results (GAAP vs. Non-GAAP) | | Q2'24 | Q2'23 | Change | | :--- | :--- | :--- | :--- | | **Revenues ($M)** | $1,017.8 | $1,026.5 | (0.8%) | | **GAAP Diluted EPS** | $0.72 | $0.87 | (17.2%) | | **Non-GAAP Diluted EPS** | $1.03 | $1.06 | (2.8%) | | **GAAP Gross Margin** | 53.3% | 57.1% | (380 bps) | | **Non-GAAP Gross Margin** | 60.7% | 62.1% | (140 bps) | | **GAAP Operating Margin** | 20.7% | 26.5% | (580 bps) | | **Non-GAAP Operating Margin** | 30.4% | 31.3% | (90 bps) | - Excluding COVID-19 revenues, total organic revenue grew **5.0%**, or **4.9%** on a constant currency basis, against a high prior-year comparable of 21.9%[1](index=1&type=chunk)[5](index=5&type=chunk) [Business Segment Performance](index=1&type=section&id=Business%20Segment%20Performance) In Q2, the Diagnostics division (excluding COVID-19) grew 9.8% in constant currency, and the Surgical division grew 7.4%, while Breast Health saw a slight decline due to divestiture but grew 1.0% excluding this impact Q2 FY2024 Revenue by Business Segment (Constant Currency Change) | Segment | Q2'24 Revenue ($M) | YoY Change (Constant Currency) | | :--- | :--- | :--- | | **Diagnostics (Total)** | $450.1 | (3.2%) | | *Diagnostics (ex-COVID, Organic)* | *$390.0* | *9.8%* | | **Breast Health (Total)** | $384.6 | (0.3%) | | *Breast Health (ex-SSI)* | *N/A* | *1.0%* | | **GYN Surgical** | $156.0 | 7.4% | | **Skeletal Health** | $27.1 | (14.3%) | - Surgical revenue growth was primarily driven by strong results from **MyoSure** and **Fluent Fluid Management** products[5](index=5&type=chunk) - Breast Health revenue was impacted by the SSI divestiture; excluding this, the segment grew **1.1%** (**1.0%** in constant currency)[5](index=5&type=chunk) [Other Financial & Operational Highlights](index=1&type=section&id=Other%20Financial%20%26%20Operational%20Highlights) The company maintained strong financial health with $292.4 million in cash flow from operations and a low net leverage ratio of 0.4x, while strategically announcing the acquisition of Endomagnetics Ltd - Announced an agreement to acquire **Endomagnetics Ltd**, a provider of breast cancer surgery technologies, for approximately **$310 million**[5](index=5&type=chunk) - Cash flow from operations remained strong at **$292.4 million** in the second quarter[5](index=5&type=chunk) - The company ended the quarter with cash and equivalents of **$2.2 billion** and a net leverage ratio (net debt over EBITDA) of **0.4 times**[8](index=8&type=chunk) - GAAP and Non-GAAP gross and operating margins decreased primarily due to the decline in COVID-19 assay sales compared to the prior year period[8](index=8&type=chunk) [Fiscal 2024 Financial Guidance](index=3&type=section&id=Fiscal%202024%20Financial%20Guidance) Hologic raised its full-year fiscal 2024 guidance, increasing the midpoint of its constant currency revenue forecast and raising its non-GAAP EPS range to $4.02 - $4.12, reflecting confidence despite fewer selling days Updated Fiscal 2024 and Q3 2024 Guidance | Guidance | Fiscal 2024 (Full Year) | Q3 2024 | | :--- | :--- | :--- | | **Revenue ($M)** | $4,000 - $4,050 | $992.5 - $1,007.5 | | **Organic ex-COVID Growth (CC)** | 5.1% to 6.5% | 4.0% to 5.6% | | **GAAP EPS** | $3.45 - $3.55 | $0.80 - $0.87 | | **Non-GAAP EPS** | $4.02 - $4.12 | $0.98 - $1.05 | - The company raised its full-year Non-GAAP EPS guidance from a previous range of **$3.97-$4.12** to a new range of **$4.02-$4.12**[10](index=10&type=chunk) - The guidance is based on a full-year non-GAAP tax rate of approximately **19.75%** and approximately **238 million** diluted shares outstanding[9](index=9&type=chunk) - Fiscal 2024 has **four fewer selling days** compared to fiscal 2023, creating a headwind of more than **100 bps** for the full year[10](index=10&type=chunk) [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) This section provides the unaudited consolidated financial statements, including income statements, balance sheets, and cash flow statements, offering a detailed view of the company's financial position and performance [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended March 30, 2024, Hologic recorded total revenues of $1,017.8 million, with net income decreasing to $169.9 million, or $0.72 per diluted share, compared to the prior year Q2 FY2024 Income Statement Highlights (in millions) | Metric | Three Months Ended Mar 30, 2024 | Three Months Ended Apr 1, 2023 | | :--- | :--- | :--- | | **Total revenues** | $1,017.8 | $1,026.5 | | **Gross profit** | $542.3 | $585.8 | | **Income from operations** | $210.4 | $272.1 | | **Net income** | $169.9 | $218.5 | | **Diluted EPS** | $0.72 | $0.87 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 30, 2024, Hologic's total assets were $8.71 billion, with cash and cash equivalents at $2.18 billion, reflecting a solid financial structure with total liabilities of $3.87 billion Balance Sheet Highlights (in millions) | Metric | March 30, 2024 | September 30, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $2,180.0 | $2,722.5 | | **Total current assets** | $3,788.7 | $4,184.5 | | **Total assets** | $8,714.4 | $9,139.3 | | **Total current liabilities** | $954.6 | $1,207.3 | | **Total liabilities** | $3,870.0 | $4,122.4 | | **Total stockholders' equity** | $4,844.4 | $5,016.9 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of fiscal 2024, net cash from operating activities was $512.4 million, with significant cash usage in financing activities primarily due to $676.8 million in common stock repurchases Cash Flow Highlights - Six Months Ended (in millions) | Metric | March 30, 2024 | April 1, 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $512.4 | $459.7 | | **Net cash used in investing activities** | ($142.7) | ($57.4) | | **Net cash used in financing activities** | ($948.0) | ($163.0) | | **Repurchases of common stock** | ($676.8) | ($150.0) | | **Net (decrease) increase in cash** | ($575.7) | $242.7 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section provides a detailed reconciliation of GAAP to non-GAAP financial measures, highlighting adjustments for items such as amortization, impairment, and restructuring costs to present a clearer view of underlying operational performance [Reconciliation of Revenue and Profitability Metrics](index=10&type=section&id=Reconciliation%20of%20Revenue%20and%20Profitability%20Metrics) GAAP revenue of $1,017.8 million for Q2 2024 is reconciled to organic revenue ex-COVID of $956.6 million, with non-GAAP gross margin at 60.7% and non-GAAP operating margin at 30.4% after adjustments Q2 FY2024 Revenue Reconciliation (in millions) | Metric | Amount | | :--- | :--- | | Consolidated GAAP Revenue | $1,017.8 | | Less: Divestitures (Blood Screening, SSI) | ($8.0) | | **Organic Revenue** | **$1,009.8** | | Less: COVID-19 Related Revenue | ($53.2) | | **Organic Revenue excluding COVID-19** | **$956.6** | Q2 FY2024 Profitability Reconciliation (in millions) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | **Gross Profit** | $542.3 | $75.2 | $617.5 | | **Gross Margin %** | 53.3% | 7.4% | 60.7% | | **Income from Operations** | $210.4 | $99.5 | $309.9 | | **Operating Margin %** | 20.7% | 9.7% | 30.4% | [Reconciliation of Net Income and EPS](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20and%20EPS) For Q2 2024, GAAP net income of $169.9 million was adjusted to a non-GAAP net income of $244.1 million, resulting in a non-GAAP diluted EPS of $1.03, reflecting key exclusions like amortization and impairment charges Q2 FY2024 Net Income and EPS Reconciliation | Metric | Amount ($M) | | :--- | :--- | | **GAAP net income** | $169.9 | | Amortization of acquired intangible assets | +$50.6 | | Impairment of intangible asset | +$26.8 | | Restructuring and integration costs | +$6.1 | | Other adjustments (net) | ($9.3) | | **Non-GAAP net income** | **$244.1** | | **GAAP diluted EPS** | **$0.72** | | **Non-GAAP diluted EPS** | **$1.03** | [Reconciliation of Other Financial Metrics](index=14&type=section&id=Reconciliation%20of%20Other%20Financial%20Metrics) Hologic's adjusted Return on Invested Capital (ROIC) was 13.4% for the trailing twelve months, with a strong adjusted net leverage ratio of 0.3x, indicating robust financial health - For the trailing twelve months ended March 30, 2024, the adjusted ROIC was **13.4%**[34](index=34&type=chunk) Net Leverage Ratio as of March 30, 2024 | Metric | Value | | :--- | :--- | | **Net Principal Debt ($M)** | $386.3 | | **EBITDA (last four quarters) ($M)** | $872.8 | | **Net Leverage Ratio** | **0.4x** | | **Adjusted EBITDA (last four quarters) ($M)** | $1,250.7 | | **Adjusted Net Leverage Ratio** | **0.3x** | [Supplemental Information](index=15&type=section&id=Supplemental%20Information) This section provides additional financial details, including a breakdown of revenue by geographic region, offering insights into the company's market distribution [Geographic Revenue](index=15&type=section&id=Geographic%20Revenue) The United States remained Hologic's largest market, contributing 74.6% of total revenue in Q2 2024, followed by Europe at 13.5%, with other international markets making up the remainder Geographic Revenue Breakdown (%) | Region | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | **U.S.** | 74.6% | 74.9% | | **Europe** | 13.5% | 14.8% | | **Asia-Pacific** | 6.3% | 6.4% | | **All Others** | 5.6% | 3.9% |

Hologic Inc. (HOLX) is set to report second-quarter fiscal 2024 results on May 2, after the closing bell.Strong strategic expansion globally is gaining investors’ confidence in Hologic. The company has been undertaking significant efforts to enter new geographies as many of its best-in-class products command a leading share in the domestic market. The company holds a disproportionately low market share internationally, indicating significant untapped potential. In addition, the continued spree of strategic ...

Analysts on Wall Street project that Hologic (HOLX) will announce quarterly earnings of $0.97 per share in its forthcoming report, representing a decline of 8.5% year over year. Revenues are projected to reach $1 billion, declining 2.5% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a company's earnings release, i ...

Hologic (HOLX) ended the recent trading session at $75.36, demonstrating a -0.03% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.87%. Elsewhere, the Dow saw an upswing of 0.67%, while the tech-heavy Nasdaq appreciated by 1.11%.The the stock of medical device maker has risen by 0.16% in the past month, leading the Medical sector's loss of 6.67% and the S&P 500's loss of 3.97%.The investment community will be paying close attention to the earning ...

Hologic, Inc. (HOLX) GYN Surgical is expected to have registered vital contributions from MyoSure and the Related fluid system, with an increasing contribution from its laparoscopic portfolio.Moreover, Hologic’s Molecular Diagnostics business is likely to register strong growth driven by a combination of newer assays like BV and CV/TV.We anticipate HOLX’s second-quarter fiscal 2024 performance, scheduled for release on May 2 after the closing bell, to reflect these aspects.Click here to know how the company ...

Hologic (HOLX) closed the most recent trading day at $77.54, moving +0.27% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 1.2%. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 1.79%.The the stock of medical device maker has risen by 1.87% in the past month, leading the Medical sector's loss of 6.57% and the S&P 500's loss of 0.85%.Investors will be eagerly watching for the performance of Hologic in its upcoming earnings disclosure. The co ...

Hologic’s (HOLX) progress in the domestic and international markets, strong pipeline of products and continued solid performance of the Molecular Diagnostics segment bolster our confidence. However, uncertainty related to COVID-19-related test sales and macroeconomic issues persists. The stock carries a Zacks Rank #3 (Hold) currently.Hologic’s Molecular Diagnostics business is registering strong growth, driven by a combination of newer assays like BV, CV/TV and contributions from Amgen and HSV, as well as s ...