Hologic(US:HOLX)2025-05-01 20:02Revenue Performance - Revenue for Q2 2025 was $1,005.3 million, a decrease of 1.2% compared to the prior year, but slightly above the guidance range of $995 to $1,005 million[2]. - Total revenues for the three months ended March 29, 2025, were $1,005.3 million, a slight decrease from $1,017.8 million for the same period in 2024, representing a decline of approximately 1.5%[22]. - Consolidated GAAP revenue for the three months ended March 29, 2025, was $1,005.3 million, a slight decrease of 1.5% compared to $1,017.8 million in the prior year[29]. - Organic revenue excluding COVID-19 for the six months ended March 29, 2025, was $1,902.5 million, a decrease of 0.4% from $1,909.3 million in the same period of 2024[29]. Earnings and Profitability - GAAP diluted EPS was a loss of ($0.08), down from $0.72 in the prior year, while non-GAAP diluted EPS was $1.03, flat compared to the prior year and at the high end of guidance[2][4]. - Net income for the three months ended March 29, 2025, was a loss of $17.4 million, compared to a net income of $169.9 million for the same period in 2024, indicating a significant decrease[22]. - GAAP net income for the three months ended March 29, 2025, was a loss of $17.4 million, while the previous year showed a profit of $169.9 million[31]. - Non-GAAP net income for the six months ended March 29, 2025, was $471.5 million, compared to $480.5 million in the same period last year[31]. - Adjusted EBITDA for the six months ended March 29, 2025, was $651.9 million, compared to $650.6 million in the prior year[31]. Revenue Segmentation - Diagnostics revenue increased by 0.8% to $453.6 million, primarily driven by higher molecular diagnostics sales, while organic diagnostics sales excluding COVID-19 grew by 4.5%[2][5]. - Breast Health revenue decreased by 7.4% to $356.2 million, primarily due to lower sales of mammography capital equipment[2][5]. - Surgical revenue grew by 4.2% to $162.5 million, driven by the addition of the acquired Gynesonics business and strong international sales[2][5]. Expenses and Costs - Operating expenses for the three months ended March 29, 2025, totaled $384.3 million, an increase from $331.9 million in the same period in 2024, marking an increase of approximately 15.7%[22]. - Research and development expenses for the three months ended March 29, 2025, were $61.5 million, down from $74.6 million in the same period in 2024, representing a decrease of about 17.5%[22]. - GAAP gross margin decreased by 1,580 basis points to 37.5%, primarily due to impairment charges on intangible assets[10]. Cash Flow and Financial Position - Cash flow from operations was $169.5 million, with cash and cash equivalents at $1.43 billion at the end of the quarter[10]. - Cash and cash equivalents at the end of the period were $1,429.5 million, down from $2,180.0 million, representing a decrease of 34.4%[26]. - Total assets decreased to $8,545.1 million from $9,156.0 million, a decline of approximately 6.7%[24]. - Total current liabilities decreased to $989.7 million from $1,037.2 million, a reduction of approximately 4.6%[24]. Shareholder Actions - The company repurchased 3.0 million shares for $200 million during the quarter[2]. - Repurchases of common stock amounted to $717.3 million during the six months ended March 29, 2025, compared to $676.8 million in the prior year[26]. Guidance and Future Expectations - Full-year revenue guidance for fiscal 2025 is maintained at $4,050 - $4,100 million, while non-GAAP EPS guidance is slightly lowered to $4.15 - $4.25[7][9]. - The company expects GAAP net income per share for the quarter ending June 28, 2025, to be between $0.85 and $0.88[33]. Impairment and Charges - The impairment of intangible assets for the three months ended March 29, 2025, was $183.4 million, significantly higher than $25.9 million for the same period in 2024[22]. - The company reported an impairment charge of $220.9 million for intangible assets during the six months ended March 29, 2025[26]. Return on Investment - Adjusted Return on Invested Capital (ROIC) was 13.7%, an increase of 30 basis points compared to the prior year[10]. - Adjusted return on invested capital (ROIC) for the trailing twelve months ended March 29, 2025, was 13.7%[35]. Geographic Revenue Breakdown - Geographic revenue breakdown for the three months ended March 29, 2025: United States 74.1%, Europe 14.6%, Asia-Pacific 5.9%, and Rest of World 5.4%[38].