Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Hologic Q2 Adj. Share Beats View, But Revenues Miss; Lowers Full-year Outlook

RELATED NEWS
Trade HOLX now with 

Medical diagnostic equipment maker Hologic Inc. (HOLX: Quote) on Monday reported a wider loss for the second quarter as higher costs and restructuring charges offset strong revenue growth. However, adjusted earnings per share beat analysts' expectations, while revenues missed their estimates. Looking ahead, the company forecast results for the third quarter below Street view and lowered its financial outlook for fiscal 2013.

Rob Cascella, President and Chief Executive Officer of Hologic said, "The fundamental long-term revenue growth drivers of our business remain strong. Adoption of our 3D mammography is accelerating with a growing backlog of sales orders in our Breast Health business. The Gen-Probe acquisition has greatly strengthened our Diagnostics business, and we are seeing increasing numbers of Diagnostics account conversions and competitive wins."

The Bedford, Massachusetts-based company's second-quarter net loss widened to $51.10 million or $0.19 per share from $40.27 million or $0.15 per share in the year-ago period. The latest quarter results were weighed down by a spike in total costs and expenses from the prior-year quarter.

On an adjusted basis, net income for the quarter was $93.85 million or $0.35 per share, compared to net income of $86.81 million or $0.33 per share in the previous-year quarter. On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.

Costs of expenses during the quarter rose 32 percent from the year-ago period to $607.12 million, reflecting restructuring and divestiture charges of $12.46 million, in addition to higher amortization of intangible assets as well as expenses.

Revenues for the quarter surged 30 percent to $612.66 million from $471.17 million in the same period last year. Analysts had a consensus revenue estimate of $639.44 million.

The increase in revenues reflect the inclusion of Gen-Probe revenues, an increase in service revenues from the company's increased installed base of digital mammography systems, and higher sales of tomosynthesis systems, breast biopsy products as well as MyoSure hysteroscopic tissue removal systems.

Looking ahead to the third quarter, Hologic forecasts adjusted earnings of $0.36 to $0.37 per share and revenues in a range of $625 million to $630 million. Analysts currently estimate earnings of $0.41 per share for the quarter on revenues of $655.24 million.

For fiscal year 2013, Hologic now forecasts adjusted earnings of $1.54 to $1.56 per share and revenue in a range of $2.53 billion to $2.55 billion. Earlier, the company forecast adjusted earnings between $1.58 and $1.60 per share and revenue of $2.61 billion to $2.64 billion. Analysts currently estimate earnings of $1.58 per share for the year on revenues of $2.62 billion.

HOLX closed Monday's regular trading session at $20.66, up $0.64 or 3.20 percent on a volume of 4.90 million shares. However, in after-hours, the stock declined $0.60 or 2.90 percent to $20.06.

Register
To receive FREE breaking news email alerts for Hologic Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Russia has agreed to resume gas supplies to Ukraine under a $4.6 billion dollar winter package, which will also secure gas for the European Union as the cold season approaches. The European Union has been mediating discussions to help find a sustainable solution to the dispute between Russia and Ukraine over gas pricing, supply and payment dues. After seven rounds of negotiations in recent months The Bank of Japan expanded its massive quantitative and qualitative easing unexpectedly as policymakers assessed it necessary to achieve the 2 percent inflation target even after a sales tax hike in April. In a 5-4 vote, the Policy Board led by Governor Haruhiko Kuroda decided to raise the monetary base at an annual pace of about JPY 80 trillion. LinkedIn Corp., the world's largest online professional network, said Thursday after the markets closed that its third quarter loss widened slightly from last year, as higher costs and expenses more than offset a 45% increase in revenue. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.