Hologic (Nasdaq:HOLX) today posted second-quarter results that topped the consensus forecast despite dipping COVID-19-related sales.
The Marlborough, Massachusetts-based women’s health and diagnostics company posted profits of $218.5 million. That amounts to 87¢ per share on sales of $1.03 billion for the three months ended April 1, 2023.
Hologic posted a 52% bottom-line slide on a sales decline of 28.5%. Significantly lower sales of COVID-19 assays — as expected — drove the declines. However, revenue still topped the company’s guidance range of $930 million to $980 million. Plus, excluding COVID-19-related revenues, total organic revenue grew by 20.2%.
Adjusted to exclude one-time items, earnings per share came in at $1.06. That landed 18¢ ahead of projections on Wall Street. Sales posted a beat, too, as analysts expected $958.8 in revenues.
Excluding COVID-19 sales, diagnostic revenues ticked up 14.9%. Breast health and surgical revenues grew 24.2% and 23.4%, respectively.
“Hologic posted robust financial results in our second fiscal quarter, with both revenue and earnings exceeding our prior guidance,” said Steve MacMillan, Hologic chair, president and CEO. “Each of our core franchises grew double digits in the period, with consolidated organic growth of more than 20%, excluding the impact of COVID.”
MacMillan said Hologic is “pleased to increase our full-year guidance once again.”
Hologic now expects 2023 revenues to range between $3.925 billion and $4.025 billion. That marks an uptick at both ends from the previous guidance for between $3.85 billion and $4 billion. The company projects adjusted EPS to land between $3.75 and $3.95, compared to a previous projection for between $3.55 and $3.85.
BTIG analysts kept their Neutral rating on HOLX shares, saying they worried about the company facing tougher comps going into fiscal year 2024. Said BTIG’s Ryan Zimmerman, Sam Durno and Iseult McMahon: “While the optics of the quarter were good, the pull-forward in mammography revenue coupled with COVID assay revenue accounted for much of the beat. The raise in guidance is below the magnitude of the beat both on top and bottom line.”
Shares of HOLX were down more than 2% to $85.50 apiece in after-hours trading.