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Mar 27, 2021

Hologic Q2 2021 Earnings Report

Hologic's financial results for Q2 2021 were announced, with revenue increasing by 103.4% and EPS more than quadrupling.

Key Takeaways

Hologic reported a strong second quarter in fiscal year 2021, with organic revenue doubling due to recovery in base businesses and response to the COVID-19 pandemic. The company completed three acquisitions and announced another, expecting accelerated growth post-pandemic.

Revenue increased 103.4% for the quarter, or 98.7% in constant currency.

Organic revenue in the second quarter increased 104.7%, or 100.0% in constant currency.

Worldwide molecular diagnostics revenue increased 390.6%, or 378.4% in constant currency, driven by demand for SARS-CoV-2 assays.

Cash flow from operations was $552.3 million, used for acquisitions and repurchase of 1.6 million shares for $120 million.

Total Revenue
$1.54B
Previous year: $756M
+103.4%
EPS
$2.59
Previous year: $0.57
+354.4%
GAAP Gross Margin
70.6%
Previous year: 52.3%
+35.0%
Non-GAAP Gross Margin
75%
Previous year: 61%
+23.0%
Non-GAAP Operating Margin
56.9%
Previous year: 31.5%
+80.6%
Gross Profit
$1.09B
Previous year: $396M
+174.3%
Cash and Equivalents
$816M
Previous year: $800M
+2.1%
Free Cash Flow
$533M
Previous year: $99.5M
+435.6%
Total Assets
$8.04B
Previous year: $6.82B
+17.9%

Hologic

Hologic

Hologic Revenue by Segment

Hologic Revenue by Geographic Location

Forward Guidance

Hologic forecasts strong financial results in Q3 2021, driven by continued strength and recovery in base businesses, partially offset by a potentially conservative outlook for COVID test revenue.

Positive Outlook

  • Revenue between $1,000 million and $1,070 million
  • Reported revenue increase between 21.5% and 30.0%
  • Constant Currency revenue increase between 17.9% and 26.4%
  • Organic revenue increase between 15.1% and 23.6%
  • Non-GAAP EPS between $1.00 and $1.15

Challenges Ahead

  • Potentially conservative outlook for COVID test revenue
  • Guidance does not include the impact of the pending Mobidiag acquisition
  • Based on a non-GAAP tax rate of approximately 21.5%
  • Guidance assumes that recent foreign exchange rates persist for all of the third quarter of fiscal 2021
  • Organic revenue guidance excludes the divested Blood Screening and the acquired Acessa, Biotheranostics, and Diagenode businesses.

Revenue & Expenses

Visualization of income flow from segment revenue to net income