The shares of Hologic, Inc. ( NASDAQ: HOLX ) spiked in the post-market trading Monday after the healthcare device maker said its financial measures for Q4 fiscal 2022 exceeded expectations even as the topline slumped amid pressure on COVID-19 testing and Breast Health business.
Revenue for the period dropped ~28% YoY to $953.3M on a reported basis as lower COVID-19 assay sales hurt diagnostics revenue, and supply chain issues related to semiconductor chips impacted the Breast Health business.
While COVID-19 revenues fell ~64% YoY to $150.7M, the Diagnostics revenue contracted ~38% YoY to $520.9M as Molecular Diagnostics revenue dropped ~43% YoY to $400.2M.
Breast Health revenue contracted ~18% as expected to $275.1M, mainly due to lower gantry revenue from semiconductor chip shortages.
However, overall revenue exceeded the company’s previous projection of $840M – $870M, and Diagnostics revenue, excluding COVID-19 revenues, rose ~11% YoY in organic terms adjusted for forex impact.
Geographically, the U.S. and international revenue dropped ~23% YoY and ~38% YoY to $728.6M and $227.4M, respectively.
Meanwhile, the company’s gross margin and operating margin on a reported basis decreased 890 basis points and 1,860 basis points to ~54% and ~15%, respectively, driving down GAAP net income ~64% YoY to $118.7M.
“Entering 2023, we see unprecedented strength across each of our core businesses and all are uniquely poised to deliver low double-digit constant currency organic revenue growth ex. COVID-19 for the year,” Chief Executive Steve MacMillan said ahead of the earnings call.
Hologic, Inc. ( HOLX ) expects its fiscal 2023 revenue and adj. EPS to reach $3.7 - $3.9B and $3.30 - $3.60, respectively, in line with the consensus.
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Hologic gains on strong Q4 beat even after COVID driven contraction