We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hologic, Inc. (HOLX - Free Report) reported fourth-quarter fiscal 2021 adjusted earnings per share (EPS) of $1.61, down 22.2% year over year. However, the bottom line surpassed the Zacks Consensus Estimate by 64.3%.
The adjustments include charges and benefits related to amortization of acquired intangible assets, MDR expenses, and restructuring and integration/consolidation costs, to name a few.
Full-year adjusted EPS was $7.21, reflecting a 71.3% surge from the year-earlier $4.21. However, the metric lagged the Zacks Consensus Estimate by 7.2%.
The company’s GAAP EPS was $1.28 in the quarter compared with the year-ago EPS of $1.88, reflecting a 31.9% decline.
Revenues in Detail
Revenues grossed $1.32 billion in the reported quarter, down 2.3% year over year (down 2.9% at constant exchange rate or CER). However, the metric surpassed the Zacks Consensus Estimate by 29.1%.
Organic revenues (excluding buyouts of Acessa, Biotheranostics Diagenode and Mobidiag) of $1.27 billion decreased 5.4% year over year and 6% at CER.
U.S. revenues of $950.6 million declined 4.4%, whereas international revenues of $366 million improved 3.9% year over year or 1.6% at CER.
Organically, revenues in the United States declined 7.4% year over year to $912.6 million in the quarter. International revenues increased 0.3% year over year (down 2% at CER) to $353.2 million.
Full-year revenues were $5.63 billion, reflecting a 49.1% increase from the year-ago period. Organic revenue growth for the year was 50.2%. Revenues surpassed the Zacks Consensus Estimate by 5.4%.
Segments in Detail
Revenues at the Diagnostics segment declined 10.9% year over year (down 11.5% at CER) to $836.8 million in the quarter under review. Cytology & Perinatal revenues of $116 million rose 3.1% at CER. Molecular Diagnostics’ revenues of $704.5 million declined 14.5% at CER. Blood Screening revenues of $16.3 million rose 87.4% year over year at CER.
Revenues at the Breast Health segment improved 15.6% from the year-ago period (up 15.1% at CER) to $334.2 million. This primarily resulted from a robust product portfolio and strong demand for Brevera following its relaunch. Impressive performance by the segment’s Breast Imaging and Interventional Breast Solutions drove the top line.
Domestic sales in this segment improved in the quarter on a 17.7% revenue uptick, year over year. Further, outside the United States, Breast Health sales improved 5.6% at CER.
Revenues at the GYN Surgical business rose 21.8% year over year (up 20.9% at CER) to $122 million, while revenues at Skeletal Health increased 26.9% year over year (up 26.2% at CER) to $23.6 million.
Operational Update
In the fiscal fourth quarter, the company-provided adjusted gross margin contracted 480 basis points (bps) to 69.4%. According to the company, the decrease in gross margin was primarily due to a decline in COVID-19 assay sales compared to the prior-year period.
Adjusted operating expenses, as stated by the company, amounted to $353.2 million, up 27.7% year over year. The company reported adjusted operating margin contraction of 1120 bps to 42.5%.
Financial Update
Hologic ended fourth-quarter 2021 with cash and cash equivalents of $1.17 billion compared with $701 million at the end of 2020. Total long-term debt (including current portion) was $3.03 billion at the end of the fourth quarter of fiscal 2021 compared with $3.04 billion at the end of 2020.
Cumulative net cash provided by operating activities at the end of fourth-quarter fiscal 2021 was $2.33 billion compared with $896.6 million a year ago.
Guidance
Hologic has provided the financial guidance for the first quarter of fiscal 2022 and full-year 2022.
For first-quarter fiscal 2022, the company projects revenues within $1.10-$1.15 billion, implying a year-over-year decline in the range of 31.7-28.6% on a reported basis, 31.5-28.4% at CER and 33.5-30.4% organically. The Zacks Consensus Estimate for first-quarter fiscal 2022 revenues is pegged at $1.01 billion.
Adjusted EPS for the quarter is estimated within $1.15-$1.25, with a projected decline of 59.8-56.3% year over year. The Zacks Consensus Estimate for first-quarter fiscal 2022 EPS is pegged at 96 cents.
For fiscal 2022, the company projects revenues within $3.75-4.00 billion implying a year-over-year decline in the range of 33.4-29.0% on a reported basis, 33.0-28.5% at CER and 34.1-29.6% organically. The Zacks Consensus Estimate for first-quarter fiscal 2022 revenues is pegged at $3.91 billion.
Adjusted EPS for fiscal 2022 is estimated within $3.55-$3.85, with a projected decline of 57.8-54.2% year over year. The Zacks Consensus Estimate for first-quarter fiscal 2022 EPS is pegged at $3.69.
Our Take
Hologic exited the fourth quarter of fiscal 2021 with better-than-expected results. Impressive performance by the Breast Imaging and Interventional Breast Solutions business drove the top line. The recently-completed buyouts of Diagenode, Biotheranostics and SOMATEX Medical Technologies along with the launch of the Novodiag system across Europe bode well for the company. Further, the uptick in GYN Surgical business led by MyoSure is encouraging.
However, the year-over-year decline in revenues driven by lower sales of COVID-19 assays compared to the prior-year period is discouraging. Escalating operating costs and contraction of both margins are worrying. Further, the fiscal first-quarter and full-year 2022 guidance with a projection of a significant year-over-year decline in earnings and total revenues is concerning.
Zacks Rank and Stocks to Consider
Hologic currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Thermo Fisher Scientific Inc. (TMO - Free Report) .
Medpace, currently carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2021 adjusted EPS of $1.29, surpassing the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher Scientific reported third-quarter 2021 adjusted EPS of $5.76, which surpassed the Zacks Consensus Estimate by 23.3%. Revenues of $9.33 billion outpaced the Zacks Consensus Estimate by 12%. It currently carries a Zacks Rank #1.
West Pharmaceutical Services, carrying a Zacks Rank #2 (Buy), reported third-quarter 2021 adjusted EPS of $2.06, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $706.5 million outpaced the consensus mark by 3.2%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Hologic (HOLX) Q4 Earnings Surpass Estimates, 2022 View Dull
Hologic, Inc. (HOLX - Free Report) reported fourth-quarter fiscal 2021 adjusted earnings per share (EPS) of $1.61, down 22.2% year over year. However, the bottom line surpassed the Zacks Consensus Estimate by 64.3%.
The adjustments include charges and benefits related to amortization of acquired intangible assets, MDR expenses, and restructuring and integration/consolidation costs, to name a few.
Full-year adjusted EPS was $7.21, reflecting a 71.3% surge from the year-earlier $4.21. However, the metric lagged the Zacks Consensus Estimate by 7.2%.
The company’s GAAP EPS was $1.28 in the quarter compared with the year-ago EPS of $1.88, reflecting a 31.9% decline.
Revenues in Detail
Revenues grossed $1.32 billion in the reported quarter, down 2.3% year over year (down 2.9% at constant exchange rate or CER). However, the metric surpassed the Zacks Consensus Estimate by 29.1%.
Organic revenues (excluding buyouts of Acessa, Biotheranostics Diagenode and Mobidiag) of $1.27 billion decreased 5.4% year over year and 6% at CER.
U.S. revenues of $950.6 million declined 4.4%, whereas international revenues of $366 million improved 3.9% year over year or 1.6% at CER.
Organically, revenues in the United States declined 7.4% year over year to $912.6 million in the quarter. International revenues increased 0.3% year over year (down 2% at CER) to $353.2 million.
Full-year revenues were $5.63 billion, reflecting a 49.1% increase from the year-ago period. Organic revenue growth for the year was 50.2%. Revenues surpassed the Zacks Consensus Estimate by 5.4%.
Segments in Detail
Revenues at the Diagnostics segment declined 10.9% year over year (down 11.5% at CER) to $836.8 million in the quarter under review. Cytology & Perinatal revenues of $116 million rose 3.1% at CER. Molecular Diagnostics’ revenues of $704.5 million declined 14.5% at CER. Blood Screening revenues of $16.3 million rose 87.4% year over year at CER.
Revenues at the Breast Health segment improved 15.6% from the year-ago period (up 15.1% at CER) to $334.2 million. This primarily resulted from a robust product portfolio and strong demand for Brevera following its relaunch. Impressive performance by the segment’s Breast Imaging and Interventional Breast Solutions drove the top line.
Domestic sales in this segment improved in the quarter on a 17.7% revenue uptick, year over year. Further, outside the United States, Breast Health sales improved 5.6% at CER.
Hologic, Inc. Price, Consensus and EPS Surprise
Hologic, Inc. price-consensus-eps-surprise-chart | Hologic, Inc. Quote
Revenues at the GYN Surgical business rose 21.8% year over year (up 20.9% at CER) to $122 million, while revenues at Skeletal Health increased 26.9% year over year (up 26.2% at CER) to $23.6 million.
Operational Update
In the fiscal fourth quarter, the company-provided adjusted gross margin contracted 480 basis points (bps) to 69.4%. According to the company, the decrease in gross margin was primarily due to a decline in COVID-19 assay sales compared to the prior-year period.
Adjusted operating expenses, as stated by the company, amounted to $353.2 million, up 27.7% year over year. The company reported adjusted operating margin contraction of 1120 bps to 42.5%.
Financial Update
Hologic ended fourth-quarter 2021 with cash and cash equivalents of $1.17 billion compared with $701 million at the end of 2020. Total long-term debt (including current portion) was $3.03 billion at the end of the fourth quarter of fiscal 2021 compared with $3.04 billion at the end of 2020.
Cumulative net cash provided by operating activities at the end of fourth-quarter fiscal 2021 was $2.33 billion compared with $896.6 million a year ago.
Guidance
Hologic has provided the financial guidance for the first quarter of fiscal 2022 and full-year 2022.
For first-quarter fiscal 2022, the company projects revenues within $1.10-$1.15 billion, implying a year-over-year decline in the range of 31.7-28.6% on a reported basis, 31.5-28.4% at CER and 33.5-30.4% organically. The Zacks Consensus Estimate for first-quarter fiscal 2022 revenues is pegged at $1.01 billion.
Adjusted EPS for the quarter is estimated within $1.15-$1.25, with a projected decline of 59.8-56.3% year over year. The Zacks Consensus Estimate for first-quarter fiscal 2022 EPS is pegged at 96 cents.
For fiscal 2022, the company projects revenues within $3.75-4.00 billion implying a year-over-year decline in the range of 33.4-29.0% on a reported basis, 33.0-28.5% at CER and 34.1-29.6% organically. The Zacks Consensus Estimate for first-quarter fiscal 2022 revenues is pegged at $3.91 billion.
Adjusted EPS for fiscal 2022 is estimated within $3.55-$3.85, with a projected decline of 57.8-54.2% year over year. The Zacks Consensus Estimate for first-quarter fiscal 2022 EPS is pegged at $3.69.
Our Take
Hologic exited the fourth quarter of fiscal 2021 with better-than-expected results. Impressive performance by the Breast Imaging and Interventional Breast Solutions business drove the top line. The recently-completed buyouts of Diagenode, Biotheranostics and SOMATEX Medical Technologies along with the launch of the Novodiag system across Europe bode well for the company. Further, the uptick in GYN Surgical business led by MyoSure is encouraging.
However, the year-over-year decline in revenues driven by lower sales of COVID-19 assays compared to the prior-year period is discouraging. Escalating operating costs and contraction of both margins are worrying. Further, the fiscal first-quarter and full-year 2022 guidance with a projection of a significant year-over-year decline in earnings and total revenues is concerning.
Zacks Rank and Stocks to Consider
Hologic currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Thermo Fisher Scientific Inc. (TMO - Free Report) .
Medpace, currently carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2021 adjusted EPS of $1.29, surpassing the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher Scientific reported third-quarter 2021 adjusted EPS of $5.76, which surpassed the Zacks Consensus Estimate by 23.3%. Revenues of $9.33 billion outpaced the Zacks Consensus Estimate by 12%. It currently carries a Zacks Rank #1.
West Pharmaceutical Services, carrying a Zacks Rank #2 (Buy), reported third-quarter 2021 adjusted EPS of $2.06, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $706.5 million outpaced the consensus mark by 3.2%.