Hologic (HOLX) Q3 Earnings Surpass Estimates, Margins Rise

Core Viewpoint - Hologic, Inc. reported strong financial results for the third quarter of fiscal 2024, with adjusted EPS of $1.06, reflecting a 14% year-over-year increase, and revenues of $1.01 billion, up 2.7% year over year, both surpassing consensus estimates [1][2][14] Financial Performance - Adjusted EPS for the quarter was $1.06, exceeding the Zacks Consensus Estimate by 3.9% [1] - GAAP EPS was 82 cents, compared to a loss of 16 cents in the same quarter last year [1] - Revenues totaled $1.01 billion, surpassing the Zacks Consensus Estimate by 1.1% [2] Geographical Revenue Analysis - U.S. revenues reached $765.3 million, a 2% increase year over year, exceeding projections [3] - International revenues were $246.1 million, up 5.1% year over year, slightly below expectations [3] Segment Performance - Diagnostics segment revenues increased 0.3% year over year to $440.8 million, with a 5.5% increase excluding COVID-19 revenues [4] - Molecular Diagnostics revenues were $310.7 million, up 3.1% at constant exchange rates [5] - Breast Health segment revenues rose 6.9% to $385 million, driven by strong Breast Imaging results [6] - GYN Surgical revenues increased 5.9% to $166.6 million, supported by sales of MyoSure and Fluent Fluid Management [7] - Skeletal Health revenues declined 29.9% to $19 million due to lower shipments [7] Operational Metrics - Adjusted gross margin increased by 30 basis points to 61.1% [8] - Adjusted operating margin expanded by 230 basis points to 31.2% [8] Financial Position - Cash and cash equivalents at the end of the quarter were $2.44 billion, up from $2.18 billion in the previous quarter [8] - Total long-term debt was $2.54 billion, slightly down from $2.55 billion [9] - Net cash provided by operating activities was $918.2 million, compared to $792.5 million a year ago [9] Guidance - For fiscal 2024, Hologic projects revenues between $4.012 billion and $4.027 billion, indicating slight year-over-year growth [10] - Adjusted EPS for fiscal 2024 is estimated between $4.04 and $4.11, reflecting a growth of 2%-3.8% year over year [11] - For the fourth quarter, projected revenues are between $970 million and $985 million, suggesting year-over-year growth of 2.6%-4.2% [12] - Adjusted EPS for the fourth quarter is estimated between 97 cents and $1.04, indicating an increase of 9%-16.9% year over year [13] Overall Assessment - Hologic's performance in the third quarter highlights the strength across its diverse portfolio, particularly in Diagnostics (excluding COVID-19), Breast Health, and Surgical segments [14] - The company experienced significant growth in its Breast Health and Surgical franchises, while the Skeletal business faced challenges due to shipment issues [15]