Hologic Inc (HOLX) Reports Fiscal Q1 2024 Earnings, Surpasses Guidance and Raises Full-Year Outlook
Revenue: $1,013.1 million, a decrease of 5.7% from the prior year period.
GAAP Diluted EPS: $1.03, a 37.3% increase from $0.75 in the prior year period.
Non-GAAP Diluted EPS: $0.98, an 8.4% decrease from $1.07 in the prior year period.
Organic Revenue Growth Excluding COVID-19: 5.2% in constant currency.
Operating Cash Flow: Remained strong at $220.0 million.
Share Repurchase and Debt Reduction: Executed a $500 million ASR, repurchased $150 million in shares, and paid down $250 million in debt.
Full-Year Guidance: Increased revenue and EPS guidance for fiscal 2024.
Hologic Inc (NASDAQ:HOLX) released its 8-K filing on February 1, 2024, announcing financial results for the first quarter of fiscal 2024 ended December 30, 2023. The company, known for its medical technology focused on women's health, operates across diagnostics, breast health, surgical, and skeletal health segments. With a significant presence in the United States, Europe, Asia, and other international markets, Hologic is headquartered in Bedford, Massachusetts.
Performance and Challenges
Hologic's revenue for the quarter was $1,013.1 million, a 5.7% decrease compared to the prior year, primarily due to lower sales of COVID-19 assays. However, excluding COVID-19 revenues, total organic revenue grew by 6.1%, or 5.2% on a constant currency basis, which is particularly notable given the quarter had four fewer selling days than the prior year period. The Diagnostics segment saw a revenue decrease of 19.9%, or 20.6% in constant currency, again largely due to reduced COVID-19 assay sales. Yet, excluding these revenues, Molecular Diagnostics revenue grew 1.9% on an organic, constant currency basis.
Breast Health revenue increased by 13.0%, or 12.2% in constant currency, driven by higher capital equipment revenue as supply chain challenges in the previous fiscal year had limited manufacturing capacity. Surgical revenue also grew by 5.3%, or 4.6% in constant currency, thanks to strong performance from MyoSure, Fluent Fluid Management, and Laparoscopy products.
Financial Achievements
The company's financial achievements this quarter are significant in the context of the Medical Devices & Instruments industry. The strong operating cash flow of $220.0 million underscores Hologic's ability to generate liquidity, which is crucial for ongoing investment and shareholder returns. The execution of a $500 million accelerated share repurchase agreement, the repurchase of shares, and the reduction of debt demonstrate a commitment to creating shareholder value and maintaining a strong balance sheet.
Analysis and Outlook
Despite the challenges posed by fewer selling days and the expected decline in COVID-19 assay sales, Hologic's performance reflects the resilience and adaptability of its business model. The company's increased full-year revenue and EPS guidance suggest confidence in its ability to sustain growth and profitability. Hologic's strategic share repurchases and debt reduction further strengthen its financial position, making it an attractive proposition for value investors.
As Hologic continues to navigate a post-pandemic environment, its focus on organic growth and operational efficiency, coupled with strategic investments in innovation, position it well for continued success in the dynamic healthcare sector.
For a more detailed analysis and commentary on Hologic Inc's financial performance, visit GuruFocus.com.
Contacts: Ryan Simon, Vice President, Investor Relations, Ryan.Simon@hologic.com, (858) 410-8514
Explore the complete 8-K earnings release (here) from Hologic Inc for further details.
This article first appeared on GuruFocus.
