Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

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

RELATED NEWS
Trade HOLX now with 
5/6/2013 9:02 PM ET

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
Restaurant operator Yum! Brands Inc. said Tuesday after the markets closed that its first quarter profit rose 18% from last year, helped by strong performance of its China division. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations, but its quarterly revenue fell short of analysts' forecast. After trending higher over the past several sessions, stocks saw some further upside during trading on Tuesday. A positive reaction to the latest corporate news contributed to the continued buying interest, lifting the Dow and the S&P 500 back near their record highs. In a blow to supporters of affirmative action, the Supreme Court on Tuesday upheld a voter-approved ban on using race as a factor in college admissions at Michigan's state-run universities. The court ruled 6 to 2 that the state law banning the use of racial preferences does not violate the U.S. Constitution, although the court was splintered on the reasoning for the decision.
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.