Hologic fiscal Q4 revenue drops 28% on COVID testing, supply chain challenges

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Hologic on Monday reported $953.3 million in fiscal fourth quarter revenues, a decrease of 28% compared to $1.32 billion in fourth quarter 2021.

The revenue drop was driven mainly by lower sales of COVID-19 assays and supply chain challenges related to semiconductor chips in its Breast Health business compared to the prior-year period.

Nonetheless, revenue was higher than guidance of $840 million to $870 million provided last quarter, Hologic noted. And the firm beat analysts’ average estimate of $863.9 million for the fourth quarter.

For the fourth quarter ended September 24, Diagnostics segment revenue decreased 38% to $520.9 million compared to $836.8 million in fourth quarter 2021, primarily driven by lower sales of COVID-19 assays compared to the prior-year period. Excluding COVID-19 revenues, Diagnostics revenue grew 11% on an organic, constant currency basis.

Within the Diagnostics segment in the fourth quarter, Molecular Diagnostics revenue declined 43% to $400.2 million from $704.5 million, again primarily driven by lower sales of COVID-19 assays compared to the prior-year period. Excluding COVID-19 revenues, Molecular Diagnostics revenue grew 17% on an organic, constant currency basis.

Also within the Diagnostics segment, Cytology and Perinatal test revenue dropped 3% year over year to $112.8 million from $116 million, and Blood Screening revenue fell 52% year over year to $7.9 million from $16.3 million.

In other segments in the recently complete quarter, Hologic’s total Breast Health revenue declined 18% to $275.1 million from $334.2 million; GYN Surgical segment revenue rose 9% to $133.3 million from $122.0 million; and Skeletal Health revenue rose 2% to $24.0 million from $23.6 million.

Hologic reported fourth quarter net income of $118.7 million, or 47 cents per share, compared to $323.8 million, or $1.28 per share, in the prior-year quarter. The firm reported the fourth quarter adjusted earnings per share (EPS) of 82 cents, surpassing analysts’ average estimate of 62 cents.

At the end of the fourth quarter, Hologic had cash and cash equivalents of $2.34 billion.

“In our fiscal 2023, we expect continued strength in our base Diagnostics and Surgical businesses as well as a strong rebound in our Breast Health business over the course of the year,” Karleen Oberton, Hologic’s CFO, said in a statement.

For the first quarter of fiscal 2023, Hologic expects revenues from $940 million to $990 million,  generally accepted accounting principles (GAAP) EPS of 60  cents to 70 cents, and adjusted EPS of 80 cents to 90 cents.

For full fiscal-year 2023, the firm expects revenues between $3.70 billion and $3.90 billion, GAAP EPS of $2.51 to $2.81, and adjusted EPS of $3.30 to $3.60. 

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