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HOLX Stock Up on Q4 Earnings & Revenue Beat, Operating Margin Expands
ZACKSยท 2025-11-04 14:11
Core Insights - Hologic, Inc. reported adjusted earnings per share (EPS) of $1.13 for Q4 fiscal 2025, reflecting an 11.9% year-over-year increase and surpassing the Zacks Consensus Estimate by 2.73% [1][9] - The company's revenues reached $1.05 billion in Q4, up 6.2% year-over-year, also exceeding projections [3][9] - Hologic has entered into an agreement to be acquired by Blackstone and TPG, with a transaction valued at up to $79 per share [14][15] Financial Performance - Adjusted EPS for fiscal 2025 was $4.26, marking a 4.4% increase from fiscal 2024 [2] - Q4 revenues of $1.05 billion surpassed the Zacks Consensus Estimate by 1.49% [3] - Fiscal 2025 total revenues were $4.10 billion, up 1.7% compared to fiscal 2024 [3] Revenue Breakdown - U.S. revenues in Q4 increased by 5.2% to $784.4 million, exceeding projections [4] - International revenues reached $265.1 million, up 9.4% year-over-year [4] - Diagnostics segment revenues grew 2.4% year-over-year to $454.1 million, driven by higher U.S. molecular diagnostics sales [5] - Breast Health segment revenues surged 4.8% to $393.7 million, outperforming expectations [7] - Surgical revenues increased by 10.2% to $172.5 million, primarily due to sales of MyoSure and Fluent [10] - Skeletal Health revenues skyrocketed by 129.9% to $29.2 million [11] Operational Metrics - Adjusted gross margin decreased by 60 basis points to 60.9% due to product mix and higher tariff expenses [12] - Adjusted operating margin improved by 120 basis points to 31.2% due to revenue growth [12] Cash and Debt Position - Cash and cash equivalents at the end of Q4 were $1.96 billion, down from $2.16 billion at the end of fiscal 2024 [13] - Total long-term debt was $2.51 billion, slightly reduced from $2.53 billion at the end of fiscal 2024 [13] - Net cash provided by operating activities decreased to $1.06 billion from $1.29 billion a year ago [13] Acquisition Details - The acquisition deal includes a cash payment of $76 per share and a contingent value right (CVR) of up to $3 per share, dependent on achieving certain revenue goals [14] - The transaction is expected to close in the first half of calendar year 2026, pending stockholder and regulatory approvals [15]