Core Insights - Hologic, Inc. reported adjusted earnings per share (EPS) of $1.08 for Q3 fiscal 2025, reflecting a 1.9% year-over-year increase and surpassing the Zacks Consensus Estimate by 2.86% [1] - The company's revenues reached $1.02 billion, a 1.2% increase year-over-year, also exceeding the Zacks Consensus Estimate by 1.68% [2] - Despite the positive earnings and revenue results, Hologic's shares fell 0.7% in after-hours trading following the announcement [2] Revenue Breakdown - U.S. revenues decreased by 0.6% to $760.7 million, missing projections [3] - International revenues increased by 6.9% to $263.1 million, surpassing expectations [3] Segment Performance - Diagnostics segment revenues grew by 1.8% to $448.9 million, driven by higher molecular diagnostics sales [4] - Breast Health segment revenues fell by 5.1% to $365.2 million, attributed to lower sales of mammography capital equipment [6] - Surgical revenues increased by 7.1% to $178.4 million, primarily due to the acquired Gynesonics business [8] - Skeletal Health revenues surged by 64.7% to $31.3 million, exceeding projections [9] Margin Analysis - Adjusted gross margin decreased by 80 basis points to 60.3% due to product mix and increased reserves [10] - Adjusted operating margin contracted by 110 basis points to 30.1%, impacted by margin dilution from acquisitions [10] Financial Position - Hologic ended Q3 fiscal 2025 with cash and cash equivalents of $1.74 billion, up from $1.43 billion at the end of Q1 [11] - Total long-term debt was $2.51 billion, slightly down from $2.52 billion in the previous quarter [11] - Net cash provided by operating activities was $702 million, down from $918.2 million a year ago [11] Future Outlook - For fiscal 2025, Hologic expects revenues between $4.08 billion and $4.09 billion, indicating a year-over-year increase of 1.3%-1.5% [12] - Adjusted EPS is projected to be in the range of $4.23-$4.26, reflecting a growth of 3.7%-4.4% year-over-year [13] - For Q4 fiscal 2025, revenues are forecasted between $1.03 billion and $1.04 billion, suggesting a year-over-year increase of 4.3%-5.3% [13] - Adjusted EPS for Q4 is estimated between $1.09 and $1.12, implying a growth of 7.9% to 10.9% year-over-year [14] Overall Assessment - Hologic delivered earnings and revenue beats in Q3 fiscal 2025, with significant contributions from Diagnostics and Surgical units [15] - The company is making progress towards improved growth, although it faces challenges in gross and operating margins [16]