Hologic (NSDQ:HOLX) posted second-quarter results today that trailed the consensus forecast, but the company forecasts a strong third quarter fueled by robust COVID-19 test revenue.
The Marlborough, Mass.-based company posted profits of $1.09 billion, or $2.38 per share, on sales of $1.54 billion for the three months ended March 27, 2020. Sales growth in the quarter was 103.4% year-over-year for a 40.3% bottom-line gain.
Adjusted to exclude one-time items, earnings per share were $2.59, three cents beneath the consensus forecast of $2.62 per share on sales of $1.54 billion.
“Hologic posted very strong financial results in our second fiscal quarter in line with our guidance,” said Steve MacMillan, the company’s CEO. “Organic revenue doubled, driven by strong recovery and momentum in our base businesses, as well as our continued response to the COVID-19 pandemic. And earnings per share more than quadrupled.”
The company is upbeat about its business in months to come. “We forecast strong financial results in our third fiscal quarter, driven by continued strength and recovery in our base businesses, partially offset by a potentially conservative but still significant outlook for COVID test revenue given the rapidly evolving market dynamics,” explained Karleen Oberton, Hologic’s CFO.
Earlier this year, financial analysts at UBS expressed skepticism about the durability of COVID-19 test revenue, projecting big drops in such testing in the second half of the year.
Hologic anticipates revenue from $1 billion to $1.07 billion in the fiscal third quarter, which trails the consensus forecast. Analysts had expected $1.29 billion.
Investors reacted by sending HOLX stock down nearly –7% to $67.50 per share in after-hours trading.
The company has been in M&A mode so far in 2021, picking up diagnostic developer Mobidiag Oy for $795 million, Somatex for $64 million, bioTheranostics for $230 million and Diagenode for $159 million.
