For the fourth quarter, the Marlborough, Mass.-based company posted profits of $82.7 million, or 29¢ per share, on sales of $802.9 million for the 3 months ended September 30, seeing the bottom-line shrink 10.3% while sales grew 10.5% compared to the same period during the previous fiscal year.
After adjusting to exclude 1-time items, earnings per share were 50¢, just ahead of the 49¢ consensus on Wall Street where analysts were expecting to see sales of $792.5 million for the quarter.
For its full fiscal year 2017, Hologic posted profits of $755.5 million, or $2.64 per share on sales of $3.06 billion, seeing the bottom line grow 128.4% while sales grew 8% compared with the previous fiscal year.
Adjusted to exclude 1-time items, earnings per share were $2.03, ahead of the $2.01 consensus on Wall Street where analysts expected to see sales of $3.05 billion, which the company also topped.
“We finished a successful and productive fiscal year with a strong performance in the fourth quarter, as revenue exceeded our guidance and sales growth, net of acquisitions and divestitures, accelerated on a sequential basis versus the third quarter,. All our legacy divisions grew on a global basis net of divestitures, while our international and molecular diagnostics franchises delivered double-digit growth. For the full year, we met our financial commitments and strengthened our future by shifting our portfolio toward higher-growth markets, and by advancing our research and development pipelines,” prez & CEO Steve MacMillan said in a prepared statement.
Hologic released guidance for its upcoming 2018 fiscal year, expecting to see sales up between 4.6% and 7.2%. The company expects to bring in between $3.2 billion and $3.28 billion for the coming fiscal year, with non-GAAP earnings per share between $2.10 and $2.15.
“We expect to post solid, mid-single-digit organic revenue growth in fiscal 2018. At the same time, after adjusting for the blood screening divestiture, we anticipate much faster EPS growth driven by healthy operating margin expansion,” CFO Bob McMahon said in a press release.
While the company beat expectations, Leerink Partner analyst Richard Newitter was cautiously optimistic about the earnings report due to “disappointing” numbers from Cynosure, which Hologics closed its acquisition of in March.
“Mgmt. expressed confidence that F4Q17 reflects a bottom for CYNO, which has been a disappointment and a controversial deal for HOLX. So, understandably, investors may remain skeptical of this business’s rebound potential into FY18. For our part, we think it will happen given (a) new leadership at the business (need to give 1-2 qtrs to turn the tide and realign the sales force), (b) new launches on the horizon, and (c) ultimately the economy and aesthetic end-mots are healthy,” Newitter wrote in a letter to investors.
Hologic shares have stayed steady in early morning trading today, down 0.1% at $39.49 as of 10:29 a.m. EST.
Earlier this month, Hologic said that its current prez and CEO Stephen MacMillan will be staying ith the company, resolving rumors that he could depart to take up the corner office at Zimmer Biomet (NYSE:ZBH).