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Hologic Preliminary Q1 Revenues Rise 8 Percent

NEW YORK (GenomeWeb) – Hologic said today that it expects to report revenues for its first fiscal quarter of about $791 million, an almost 8 percent year-over-year rise from Q1 2017.

The company had guided for revenues in the range of $775 million to $790 million.

For Q1 ended Dec. 30, the firm's diagnostics business revenues are expected to drop to $285 million from $325 million in the prior-year quarter. When the firm's diagnostics products revenues exclude sales from its blood business, revenues are expected to rise to $272 million from $260 million in Q1 2017.

Revenues from Hologic's breast health business are expected to rise to $288 million from $273 million in the same period. Its medical aesthetics business is expected to post $91 million in revenues in fiscal Q1 2018. The firm's gynecologic surgical business revenues are expected to drop to $108 million in Q1 from $115 million in the prior-year quarter, and its skeletal health business revenues are expected to drop to $20 million from $21 million.

The firm noted that revenue changes compared to the prior-year period were affected by the divestiture of its blood screening business, which closed in Jan. 2017, and the acquisition of Cynosure, which closed in March 2017. Hologic said it also had four fewer selling days in the Q1 of fiscal 2018 than in the prior-year period.

The firm said that primarily as a result of the recent passage of comprehensive US tax reform legislation, it expects its non-GAAP effective tax rate to be approximately 23 percent to 24 percent in fiscal 2018, lower than its prior guidance of about 31 percent. 

Hologic Chairman, President, and CEO Steve MacMillan said in a statement that the firm expects to post solid first quarter revenue just above its guidance range, "driven by strength in our breast health, molecular diagnostics, and international businesses." He noted that US tax reform will allow the firm to achieve a lower effective tax rate in fiscal 2018, increasing its profitability while simultaneously providing opportunities to re-invest in the business to drive future growth.

Cowen analyst Doug Schenkel said in a research note today that diagnostics was among the biggest drivers of upside over its revenue forecast. Excluding the firm's blood business Dx revenues, diagnostics revenues are expected to be at least $5 million above the investment bank's forecast, he said.  

In early morning trading on the Nasdaq, shares of Hologic were up less than one percent to $44.17.