Medical diagnostic equipment maker Hologic Inc. (HOLX) 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.
by RTT Staff Writer
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