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Jun 29, 2024

Hologic Q3 2024 Earnings Report

Hologic returned to top-line reported growth and exceeded guidance for both the top and bottom-line.

Key Takeaways

Hologic announced its financial results for the fiscal third quarter ended June 29, 2024, with revenue of $1,011.4 million, a 2.7% increase, and GAAP diluted EPS of $0.82 and non-GAAP diluted EPS of $1.06. The company's performance was driven by higher sales in Molecular Diagnostics, Breast Imaging, and Surgical.

Revenue of $1,011.4 million increased 2.7% for the quarter, or 3.1% in constant currency, primarily driven by higher sales in Molecular Diagnostics, Breast Imaging, and Surgical.

Excluding COVID-19 revenues, total organic revenue grew 5.5%, or 5.8% on a constant currency basis.

Cash flow from operations remained strong in the third quarter at $405.7 million.

Closed the acquisition of Endomagnetics on July 25, 2024, which develops and sells breast surgery localization and lymphatic tracing technologies.

Total Revenue
$1.01B
Previous year: $984M
+2.7%
EPS
$1.06
Previous year: $0.93
+14.0%
GAAP Gross Margin
55.4%
Non-GAAP Gross Margin
61.1%
Non-GAAP Operating Margin
31.2%
Gross Profit
$568M
Previous year: $368M
+54.6%
Cash and Equivalents
$2.44B
Previous year: $2.77B
-11.8%
Free Cash Flow
$372M
Previous year: $277M
+34.1%
Total Assets
$8.89B
Previous year: $9.34B
-4.8%

Hologic

Hologic

Hologic Revenue by Segment

Hologic Revenue by Geographic Location

Forward Guidance

Hologic's financial guidance for the fourth quarter and full year 2024 is provided, incorporating Q3 performance, the addition of Endomagnetics, and the impact from the temporary stop-ship of Horizon DXA systems. The guidance is based on a full year non-GAAP tax rate of approximately 19.75%, and diluted shares outstanding of approximately 238 million for the full year.

Positive Outlook

  • Fiscal 2024 Revenue between $4,012 - $4,027
  • Fiscal 2024 GAAP EPS between $3.37 - $3.44
  • Fiscal 2024 Non-GAAP EPS between $4.04 - $4.11
  • Q4 2024 Revenue between $970 - $985
  • Q4 2024 GAAP EPS between $0.80 - $0.87

Challenges Ahead

  • Fiscal 2024 revenue is expected to have a (0.4%) to (0.1%) decrease
  • Constant Currency % Increase (Decrease) (0.5%) to (0.1%)
  • Organic excluding COVID-19 % Increase 5.2% to 5.6%
  • Q4 2024 GAAP EPS has an increase between 116.2% to 135.1%
  • Q4 2024 Non-GAAP EPS has an increase between 9.0% to 16.9%

Revenue & Expenses

Visualization of income flow from segment revenue to net income