Hologic Shares Decline Despite Q4 Results Meeting Expectations, Weak Forecasts Weighing Heavy

MARLBOROUGH, Mass. - Hologic, Inc. (NASDAQ:HOLX) reported that its fourth-quarter earnings met analyst expectations, but shares fell 2% in after-hours trading due to weaker-than-expected guidance for the upcoming quarter. The women's health specialist announced adjusted earnings of $1.01 per share for the quarter ending September 28, 2024, which aligned with Wall Street estimates. Revenue reached $987.9 million, surpassing the consensus estimate of $978.27 million, reflecting a 4.5% year-over-year increase or a 4.2% increase at constant currency.

Excluding COVID-19 related sales, Hologic's organic revenue grew by 5.3% or 5.0% at constant currency. The diagnostics segment led the growth, with revenue rising 6.5% to $987.9 million, mainly due to higher Molecular Diagnostics sales.

Hologic’s Chairman, President, and CEO Steve MacMillan stated, "We achieved another strong quarter of growth, resulting in solid fiscal year 2024 results that reinforce our durable performance track record."

Despite the positive fourth-quarter results, Hologic's shares declined in after-hours trading as the company issued first-quarter fiscal year 2025 guidance that fell short of analyst expectations. The company anticipates earnings of $1.00 to $1.03 per share for the first quarter of fiscal year 2025, below the consensus estimate of $1.03.

Hologic's cash flow from operations remained strong at $367.1 million for the quarter. The company also announced it would enter into a $250 million accelerated share repurchase agreement expected to be completed in the second quarter of fiscal year 2025.

Looking ahead, Hologic expects to continue implementing its growth strategy by leveraging its leading brands to achieve diversified revenue growth and industry-leading margins in fiscal year 2025.