Medical imaging systems company Hologic Inc. (HOLX) reported Monday a profit for the first quarter that plunged from last year, reflecting higher charges as well as costs and expenses. Striping down charges, adjusted earnings per share topped analysts' expectations by a penny, while quarterly revenues missed their estimates bu a whisker. The company also raised its earnings guidance for the second quarter, while maintaining annual revenue outlook.
"During the quarter, we leveraged our expanded product portfolio to drive year-over-year growth in our Diagnostics, Breast Health and GYN Surgical segments. We are executing the strategy we outlined at the beginning of the year and we believe we are well positioned to build on our momentum for the remainder of fiscal 2013 and beyond," President and CEO Rob Cascella said in a statement.
The Bedford, Massachusetts-based company reported net income of $3.12 million or $0.01 per share for the first quarter, sharply lower than $20.81 million or $0.08 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter was $101.78 million or $0.38 per share, compared to $90.04 million or $0.34 per share in the year-ago quarter.
On average, 20 analysts polled by Thomson Reuters expected earnings of $0.37 per share for the first quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew to $631.36 million from $472.71 million in the same quarter last year.
Excluding primarily adjustment related to Novartis collaboration, adjusted revenues increased 36.4 percent to $644.64 million, but missed seventeen Wall Street analysts' consensus estimate of $645.93 million by a whisker.
Breast health revenues grew 2.5 percent to $220.8 million, diagnostics revenues increased nearly doubled to $305.9 million and GYN surgical revenues improved 3.0 percent to $80.9 million, while skeletal health revenues declined 4.1 percent to $23.7 million from last year.
Costs and expenses during the quarter spiked to $568.13 million from $405.95 million in the same year-ago quarter.
Looking ahead to the second quarter, the company expects adjusted earnings in a range of $0.33 to $0.34 per share on projected adjusted revenues between $635 million and $440 million. Analysts expect the company to report earnings of $0.38 per share on revenues of $650.23 million for the quarter.
For fiscal 2013, the company raised its adjusted earnings guidance to a range of about $1.58 to $1.61 per share from the prior forecast of about $1.56 to $1.58 per share, while continuing to project adjusted revenues between $2.61 billion and $2.64 billion.
Street is currently looking for full-year 2013 earnings of $1.58 per share on annual revenues of $2.64 billion.
The also noted that it will record a cumulative adjustment in its results for the second quarter due to a federal legislation that was passed in early January 2013 to extend the federal research tax credit for two years, starting retroactively from January 2012.
"Looking ahead, we believe Hologic's diverse, innovative products will continue to gain traction in the marketplace by exceeding the expectations of our customers and addressing the needs of our patients. We have leadership across our business segments and the resources and capabilities to support our long-term growth strategy," Cascella added.
HOLX closed Monday's regular trading session at $23.25, down $0.47 or 1.98% on a volume of 3.61 million shares. The stock lost a further $0.95 or 4.09% in after-hours trading.
by RTT Staff Writer
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