Core Insights - Hologic's fiscal 2024 fourth-quarter revenues slightly exceeded consensus estimates, while earnings fell short by 1% after three consecutive quarters of positive surprises, although both metrics improved year-over-year [1][3][6] - The company reported a solid operating margin and is positioned as a top-tier performer within its peer group, with potential for further improvement in fiscal 2025 [1][6] Financial Performance - Q4 revenues increased by 4.5% to $987.9 million, and non-GAAP earnings per share rose by 13.5% to $1.01, marking the second consecutive quarter of top-line growth [3][6] - Non-GAAP gross margin improved by 110 basis points year-over-year to 61.5%, while non-GAAP operating margin reached 30%, showing resilience amid challenges [6] Segment Performance - The Molecular Diagnostics segment grew by 13.2% excluding COVID-19, driven by the adoption of various assays and strong contributions from Biotheranostics [4] - Breast Health and GYN Surgical segments both reported 5.4% organic growth, attributed to increased service revenues and product contributions [5] M&A and Cash Flow - Hologic ended fiscal 2024 with $2.2 billion in cash and cash equivalents and $1.29 billion in operational cash flow, indicating a strong financial position [7] - The company signed an agreement to acquire Gynesonics for $250 million and has initiated share repurchase programs totaling $250 million [7][12] Market Performance - Year-to-date, Hologic shares have risen by 11%, outperforming the industry growth of 6.3% and the broader medical sector's 2.1% [8] - The company's forward 12-month P/E ratio of 18.3X is lower than the industry average of 32.6X, suggesting a potentially undervalued stock [8] Future Outlook - Hologic is expected to leverage its innovative product lines for long-term growth, with new launches and enhancements in existing products [10][11] - The company anticipates significant opportunities in underpenetrated international markets, particularly for minimally invasive treatment options [12] Challenges - Skeletal Health revenues fell nearly 55% year-over-year due to shipment issues, which are expected to impact guidance for fiscal 2025 [13] - A voluntary recall of the BioZorb 3D Bioabsorbable Marker has raised concerns, with the FDA issuing safety communications regarding its use [14]

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 ...

Core Viewpoint - Hologic reported a revenue increase of 4.5% year-over-year for the quarter ended September 2024, with earnings per share (EPS) of $1.01, slightly below analyst expectations [1] Financial Performance - Total revenue for the quarter was $987.9 million, exceeding the Zacks Consensus Estimate of $979.28 million by 0.88% [1] - EPS was reported at $1.01, compared to $0.89 in the same quarter last year, but fell short of the consensus estimate of $1.02 by 0.98% [1] Segment Performance - GYN Surgical revenue was $156.50 million, slightly below the average estimate of $156.71 million, with a year-over-year increase of 5.7% [3] - Molecular Diagnostics revenue reached $319.30 million, surpassing the average estimate of $302.56 million, reflecting a year-over-year growth of 9.4% [3] - Blood Screening revenue was $7.50 million, exceeding the estimate of $6.84 million, but showed a significant decline of 19.4% year-over-year [3] - Breast Imaging revenue was $293.40 million, slightly below the estimate of $298.18 million, with a year-over-year increase of 4% [3] - Total Diagnostics revenue was $443.30 million, exceeding the estimate of $429.35 million, with a year-over-year growth of 6.5% [3] - Skeletal Health revenue was $12.70 million, significantly below the estimate of $18.49 million, reflecting a decline of 54.6% year-over-year [3] - Cytology and Perinatal revenue was $116.50 million, slightly below the estimate of $119.95 million, with a year-over-year increase of 1.1% [3] - Total Breast Health revenue was $375.50 million, slightly above the estimate of $374.84 million, with a year-over-year growth of 6.4% [3] - Interventional Breast Solutions revenue was $82.10 million, exceeding the estimate of $76.66 million, with a year-over-year increase of 16.3% [3] - Service and other revenue was $200.10 million, surpassing the estimate of $188.59 million, reflecting a year-over-year growth of 6.3% [3] - Product Sales revenue was $787.80 million, slightly below the estimate of $790.58 million, with a year-over-year increase of 4.1% [3] Stock Performance - Hologic shares have returned 2.6% over the past month, outperforming the Zacks S&P 500 composite, which returned 0.4% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]

Company Performance - Hologic reported quarterly earnings of $1.01 per share, slightly missing the Zacks Consensus Estimate of $1.02 per share, but showing an increase from $0.89 per share a year ago, resulting in an earnings surprise of -0.98% [1] - The company posted revenues of $987.9 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.88% and increasing from $945.3 million year-over-year [2] - Over the last four quarters, Hologic has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Future Outlook - The immediate price movement of Hologic's stock will depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.04 on revenues of $1.05 billion, and for the current fiscal year, it is $4.36 on revenues of $4.23 billion [7] - The estimate revisions trend for Hologic is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Medical - Instruments industry, to which Hologic belongs, is currently in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Performance - Revenue for Q4 2024 was $987.9 million, representing a growth of 4.5% compared to Q4 2023[1] - Diagnostics revenue increased by 6.5% to $443.3 million, driven by higher Molecular Diagnostics sales[3] - Excluding COVID-19 revenues, organic revenue grew by 5.3% to $933.0 million[3] - Total revenues for the three months ended September 28, 2024, were $987.9 million, a 4.0% increase from $945.3 million for the same period in 2023[21] - Consolidated GAAP revenue for the three months ended September 28, 2024, was $987.9 million, compared to $945.3 million for the same period in 2023, indicating a year-over-year increase of about 4.3%[26] - Organic revenue for the year ended September 28, 2024, was $3,990.3 million, slightly up from $3,973.8 million in the previous year, showing a growth of approximately 0.4%[26] - Organic revenue excluding COVID-19 related revenue was $933.0 million for the three months ended September 28, 2024, compared to $886.2 million in the same period last year, marking an increase of about 5.3%[26] Profitability Metrics - GAAP gross margin improved to 56.5%, an increase of 360 basis points from the prior year[6] - Gross profit for the three months ended September 28, 2024, was $557.7 million, compared to $500.3 million for the same period in 2023, reflecting a gross margin increase[21] - GAAP net income for Q4 2024 was $178.6 million, a 97.1% increase year-over-year[7] - Net income for the three months ended September 28, 2024, was $178.6 million, significantly up from $90.6 million in the same period last year, representing a 96.9% increase[21] - Non-GAAP net income rose to $237.5 million from $219.3 million year-over-year, an increase of 8.9%[28] - GAAP operating margin percentage improved to 23.3% from 14.0% year-over-year, indicating enhanced operational efficiency[27] - Non-GAAP operating margin percentage remained stable at 30.0% for both periods, demonstrating consistent performance[27] - Adjusted EBITDA for the three months ended September 28, 2024, was $323.7 million, compared to $288.3 million in the previous year, reflecting an increase of 12.3%[28] - GAAP net income for the twelve months ended September 28, 2024, was $789.5 million, with adjustments leading to a non-GAAP net income of $968.7 million[31] Cash and Investments - The company ended Q4 2024 with cash and cash equivalents of $2.16 billion[8] - Cash and cash equivalents decreased to $2,160.2 million as of September 28, 2024, down from $2,722.5 million as of September 30, 2023[22] - The company reported a net cash used in investing activities of $781.0 million for the year ended September 28, 2024, compared to $152.1 million in the previous year, indicating a significant increase in investment activities[25] - Repurchases of common stock amounted to $835.1 million for the year ended September 28, 2024, compared to $474.8 million in the previous year, reflecting a substantial increase in stock buybacks[25] - The company experienced a decrease in cash and cash equivalents, ending the period with $2,160.2 million, down from $2,755.7 million at the beginning of the period[25] Guidance and Future Outlook - Financial guidance for fiscal 2025 indicates expected sustainable revenue growth and faster EPS growth[9] - Fiscal 2025 revenue guidance is projected between $4,150 million and $4,200 million, representing a 3.0% to 4.2% increase[11] - GAAP EPS guidance for Fiscal 2025 is estimated to be between $3.53 and $3.63, reflecting a 6.3% to 9.3% increase[11] - Q1 2025 revenue is expected to be between $1,025 million and $1,035 million, indicating a 1.2% to 2.2% increase[11] - Q1 2025 GAAP EPS is projected to be between $0.81 and $0.84, showing a decrease of (21.4%) to (18.4%)[11] - Non-GAAP EPS for Q1 2025 is expected to be between $1.00 and $1.03, reflecting a 2.0% to 5.1% increase[11] - Organic revenue growth for Fiscal 2025 is projected to be between 1.7% and 3.0%[11] Acquisitions and Share Repurchases - Hologic completed the acquisition of Endomagnetics for approximately $310 million and announced an agreement to acquire Gynesonics for about $350 million[3] - The company repurchased 11.2 million shares for $808 million in fiscal 2024, including a $500 million accelerated share repurchase[3] Tax and Compliance - Non-GAAP provision for income taxes was $238.4 million, reflecting the effective tax rate of 19.75% for the trailing twelve months[31] - Forward-looking statements include risks related to macroeconomic uncertainties and regulatory compliance[19] Research and Development - Research and development expenses decreased to $67.3 million for the three months ended September 28, 2024, from $72.9 million in the same period in 2023[21] Balance Sheet and Equity - Total current assets decreased to $3,823.3 million as of September 28, 2024, compared to $4,184.5 million as of September 30, 2023[22] - Total assets increased slightly to $9,156.0 million as of September 28, 2024, from $9,139.3 million as of September 30, 2023[23] - Total stockholders' equity increased to $5,130.0 million as of September 28, 2024, compared to $5,016.9 million as of September 30, 2023[24] - The adjusted net leverage ratio was reported at 0.3, indicating a strong balance sheet position[32] Miscellaneous - The company is focused on improving women's health through innovative medical technologies[17] - The company defines non-GAAP measures to exclude various items, including amortization of intangible assets and restructuring charges[12] - The company emphasizes the importance of reviewing consolidated financial statements alongside non-GAAP measures for a complete understanding[15] - The company incurred restructuring and integration charges amounting to $0.01 per share for the quarter ending September 28, 2024[30] - The company experienced an impairment charge related to intangible assets acquired in the Mobidiag acquisition during the first quarter of fiscal 2024[31]

Analysts on Wall Street project that Hologic (HOLX) will announce quarterly earnings of $1.02 per share in its forthcoming report, representing an increase of 14.6% year over year. Revenues are projected to reach $979.28 million, increasing 3.6% from the same quarter last year. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 2.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this peri ...

In the latest trading session, Hologic (HOLX) closed at $80.46, marking a -0.46% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.27%. Meanwhile, the Dow experienced a rise of 0.65%, and the technology-dominated Nasdaq saw an increase of 0.26%. Shares of the medical device maker have appreciated by 0.01% over the course of the past month, outperforming the Medical sector's loss of 4.14% and lagging the S&P 500's gain of 2%. The investment community will be paying ...

Hologic, Inc.'s (HOLX) Diagnostics segment, excluding COVID-19 assay and related revenues, is expected to have significantly benefited from the robust Panther utilization in its Molecular Diagnostics franchise. Higher gantry deliveries and robust service revenues are likely to have contributed to the Breast Health segment's performance. Furthermore, MyoSure is likely to have emerged as the key driver of the GYN Surgical division's revenues. We anticipate that the company's fiscal 2024 fourth-quarter financi ...

Hologic (HOLX) closed at $81.15 in the latest trading session, marking a -0.51% move from the prior day. This move lagged the S&P 500's daily loss of 0.18%. Elsewhere, the Dow saw a downswing of 0.8%, while the techheavy Nasdaq appreciated by 0.27%. Coming into today, shares of the medical device maker had gained 0.22% in the past month. In that same time, the Medical sector lost 3.03%, while the S&P 500 gained 4.46%. The upcoming earnings release of Hologic will be of great interest to investors. The compa ...

Hologic (HOLX) is set to release fourth-quarter fiscal 2024 results on Nov. 4 after the closing bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for fourth-quarter earnings suggests a 14.6% increase year over year to $1.02 per share. The estimate has remained stable in the past 60 days. The Zacks Consensus Estimate for fourth-quarter revenues currently stands at $979.3 million, a 3.6% improvement compared to the last year.Image Source: Zacks Investme ...