Hologic Q3 2020 Earnings Report
Key Takeaways
Hologic's Q3 2020 results showed a revenue decrease of 3.5% due to the Cynosure divestiture, but organic revenue grew by 7.7%. Molecular Diagnostics revenue increased significantly due to high demand for COVID-19 tests. The company launched a new ultrasound system in its Breast Health division and repaid $250 million of debt.
Revenue declined 3.5%, but organic revenue grew 7.7%.
Molecular Diagnostics revenue increased 169.3% due to strong demand for COVID-19 tests.
The Breast Health division launched the SuperSonicâ„¢ MACH 40 ultrasound system in the United States.
Cash flow from operations was $223 million, and $250 million of debt was repaid.
Hologic
Hologic
Hologic Revenue by Segment
Hologic Revenue by Geographic Location
Forward Guidance
Hologic provided financial guidance for the fourth quarter of fiscal 2020, anticipating strong demand for COVID tests and ongoing recovery in other divisions.
Positive Outlook
- Revenue between $925 million and $1,025 million, representing a 6.8% to 18.4% increase.
- Organic revenue growth between 17.4% and 30.3%.
- GAAP EPS between $0.73 and $0.93.
- Non-GAAP EPS between $0.95 and $1.15, representing a 46.2% to 76.9% increase.
- Strong demand for COVID tests and ongoing recovery in other divisions are enabling the company to provide guidance.
Challenges Ahead
- Business environment remains highly fluid and unpredictable.
- Guidance ranges are wider than usual due to uncertainty.
- Constant currency guidance assumes foreign exchange rates are the same as in fiscal 2019.
- Organic revenue guidance excludes divested and acquired businesses.
- The guidance is based on a full year non-GAAP tax rate of approximately 22.75%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income