
Hologic Reports Solid 3Q23; Mammography Backlog Driving Strong Capital Equipment Sales
11-10-23 (by: Scott Gleason) Hologic has announced its financial results for the fourth quarter of fiscal 2023 reporting total revenue of $945.3 million for the fourth quarter of 2023, reflecting a decrease of 0.8% compared to the previous year. The decline was attributed to reduced sales of COVID-19 assays and excluding COVID-19-related revenue, organic revenue grew by 17.5%. Consensus forecasts called for total revenue of $940 million.
Diagnostics, reported a 20.1% decline in revenue for the quarter due to lower COVID-19 assays. However, when excluding the COVID-19-related revenue, the Diagnostics segment grew by 10.2%. The company noted a doubling of the company’s Panther instrument installed base during COVID-19.
Breast Health saw substantial growth and was up 28.2%, with improved capital equipment sales of mammography systems compared to the previous year where there were chip supply challenges which impacted sales. Given the changing interest rate environment and slower surgical volume growth, capital equipment sales have been a concern of investors. The company noted it now has over 10,000 mammography systems installed across the United States. The company noted it still had an elevated backlog for systems following its supply challenges for microprocessors.
Surgical revenue increased by 11.0% driven by strong results from the MyoSure and Fluent Fluid Management products.
Adjusted EPS in the quarter were $0.89 in the fourth quarter ahead of consensus forecasts of $0.84. Hologic generated strong cash flow from operations in the fourth quarter of $258.7 million and paid down $250 million in debt.
Hologic guided to 2024 revenue of $3,920 million to $4,020 million, representing a 2.3% decrease to a 0.2% increase. Organic revenue growth, excluding COVID-19, is projected to be between 4.2% and 6.9%, in line with the company’s stated long-term growth goals. Non-GAAP EPS for the full year is projected to be between $3.90 and $4.10, a range that represents a 1.5% decrease to a 3.5% increase.