NEW YORK – Hologic reported after the close of the market Thursday that its non-COVID fiscal fourth quarter organic revenues grew 17 percent compared to one year earlier on a constant currency basis with double-digit organic growth across all its divisions.
For the three months ended Sept. 30, the Marlborough, Massachusetts-based firm reported total revenues of $945.3 million, down about 1 percent compared to $953.3 million in the year-ago quarter. The firm beat Wall Street's consensus prediction of $940.0 million in the quarter and approached the top end of the firm's earlier revenue guidance of $910 million to $950 million.
"Each one of our divisions grew double digits organically in the quarter and for the full year excluding the impact of COVID," Hologic CEO Steve MacMillan said in a statement. "We are a new Hologic, with more growth drivers, a durable and industry leading margin profile, and an exceptional balance sheet. For fiscal 2024, we are excited to continue to showcase our standout performance, even against strong 2023 comps."
MacMillan said on a conference call that the firm's organic growth rates in 2023 were far above the company's long-term targets.
The firm reported its overall diagnostics revenues were down 20 percent year over year to $416.4 compared to $520.9 million one year earlier, on the fall-off in COVID-19 testing. Excluding COVID-19 testing revenues, the firm reported diagnostic revenues rose 11 percent to $361.4 million compared to $325.4 million a year earlier.
Within the diagnostics division, molecular diagnostic revenues were down 27 percent year over year to $291.9 million from $400.2 million. Excluding COVID-19 revenues, molecular diagnostic revenues grew 15 percent year over year on an organic constant currency basis, the firm said.
Meanwhile, cytology and perinatal revenues were up 2 percent to $115.2 million from $112.8 million a year ago while blood screening revenues rose 18 percent to $9.3 million from $7.9 million.
MacMillan said molecular diagnostics growth was driven by strong contributions from the firm's vaginitis and Mycoplasma genitalium assays as well as from its Biotheranostics subsidiary that develops tests to support cancer treatment. He said the Biotheranostics business is still in the "early innings" of growth for its Breast Cancer Index gene expression assay for predicting whether patients will benefit from extended, adjuvant endocrine therapy beyond five years.
MacMillan said Hologic's diagnostics business is 40 percent larger than it was in 2019 and its molecular diagnostics business is nearly 80 percent larger than it was pre-pandemic. He attributed that growth to expanded installation of the company's Panther molecular diagnostics system to more than 3,260 instruments, as well as expansion of the company's diagnostics menu and acquisitions, which would include the $230 million deal for Biotheranostics in 2021. As Panther customers expand their testing menus, Hologic's molecular diagnostics revenue rises and the company becomes more deeply rooted in those customers' operations, he said.
MacMillan also said on the call that Panther instrument sales may be very low in the near term and the company is working to ramp up revenue through existing customers. The firm is focusing increased attention on expanding sales of its Panther Fusion modules to customers with Panther instruments. Those modules enable PCR testing in addition to the Panther's existing transcription-mediated amplification capabilities.
"I think we continue to see years and years of growth just even from the existing installed base as we're expanding the menu and putting more Fusions out there," he said.
Among Hologic's other divisions, breast health revenues rose 28 percent year over year to $352.8 million compared to $275.1 million in Q4 2022. The firm attributed the gain to higher capital equipment revenue compared to the prior-year quarter, when supply chain struggles resulted in lower revenues.
Hologic's Gyn Surgical business grew 11 percent year over year, to $148.0 million compared to $133.3 million in the year-ago quarter, on strong results from its MyoSure and Fluent Fluid Management businesses. Its Skeletal Health revenues grew 17 percent, to $28.0 million compared to $24.0 million a year earlier.
The firm reported net income of $90.6 million, or $.37 per share, compared to $118.7 million, or $.47 per share, in Q4 2022. The firm reported a non-GAAP diluted EPS of $.89 per share, beating analysts' consensus estimate of $.84 per share.
Hologic said its R&D spending shrank about 4 percent year over year to $72.9 million from $76 million, and its SG&A costs dropped 9 percent to $232.4 million compared to $256.5 million in the year-ago quarter.
For the full fiscal year, Hologic's total revenues were down 17 percent year over year, to $4.03 billion compared to $4.86 billion in fiscal 2021. The firm came in near the top of its revenue guidance of $3.995 billion to $4.035 billion and just beat analysts' predicted revenues of $4.02 billion.
The firm's net income was $456.0 million in fiscal 2023, or $1.83 per share, down from $1.30 billion in fiscal 2022, or $5.13 per share. Adjusted EPS was $3.96, topping the Street's consensus prediction of $3.91.Hologic ended the quarter with $2.72 billion in cash and cash equivalents.
MacMillan said the company is patiently watching for M&A opportunities as well as using cash for stock buybacks, including $238 million to buy back 3.2 million shares in Q4 2023 and another $150 million so far in Q1 of fiscal 2024 to buy another 2.2 million shares. He announced on Thursday Hologic was committing to another $500 million in buybacks, which he said brings Hologic's past and pending stock buybacks to a total $2.8 billion in about four years.
Hologic's revenues in the first quarter of fiscal 2024 are expected to range between $960 million and $985 million. EPS for fiscal Q1 is anticipated to be in the range of $.74 and $.79, and the adjusted EPS is expected to be $.92 to $.97.
The firm's full fiscal year 2024 revenues are predicted to range between $3.92 billion and $4.02 billion. EPS is expected to be in the range of $3.19 to $3.39, and the adjusted EPS is expected to be between $3.90 and $4.10.
In early morning trading on Friday on the Nasdaq, Hologic's shares were up about 7 percent to $71.87.