NEW YORK – Hologic said after the close of the market on Wednesday that revenues for its fiscal third quarter increased 42 percent year over year.
For the three months ended June 26, the Marlborough, Massachusetts-based company posted revenues of $1.17 billion, compared to $822.9 million in the year-ago period, and beat the consensus Wall Street estimate of $1.04 billion. Excluding material acquisitions and divestitures, organic revenue in the quarter grew 38 percent year over year.
The company reported diagnostics revenues of $665.5 million, up 25 percent year over year from $532.2 million. Within the division, molecular diagnostics revenues grew 17 percent to $536.4 million from $460.3 million, while cytology and perinatal revenues grew 81 percent to $115.9 million from $64.1 million.
Hologic said that in the recently completed quarter it saw lower demand for its two COVID-19 assays that run on the Panther and Panther Fusion molecular diagnostic systems. In May 2020, the firm received US Food and Drug Administration Emergency Use Authorization for its Aptima SARS-CoV-2 assay running on the Panther system, and last year in March it received FDA EUA for the Panther Fusion SARS-CoV-2 assay.
The company noted that in the recent quarter, it completed the acquisition of Finnish molecular diagnostics company Mobidiag for an enterprise value of approximately $808 million.
Also within the diagnostics division, blood screening revenues rose 69 percent year over year to $13.2 million from $7.8 million.
Among the company's other divisions, breast health revenues rose 56 percent to $349.0 million from $224.0 million. GYN surgical revenues rose 148 percent to $127.9 million from $51.5 million. Skeletal health revenues rose 70 percent to $25.9 million from $15.2 million.
"Hologic looks like a fundamentally different company today than just 18 months ago before the pandemic," Stephen MacMillan, the firm's chairman, president, and CEO, said on a conference call following the release of the financial results. "We have a much higher profile on the global stage, which has helped create a stronger and more durable foundation to accelerate our international growth, and we have placed hundreds of new Panther instruments, which is boosting our razor-razorblade business model."
During the past five quarters, Hologic used $1.35 billion of $2.5 billion in operating cash to buy six companies, and about $510 million to buy back stock, he noted.
It added "new growth platforms" in diagnostics with the acquisitions of San Diego-based Biotheranostics and Espoo, Finland-based Mobidiag, and "increased its assay development capabilities" with Liège, Belgium-based Diagenode, MacMillan said. "Based on all this progress, we are now targeting organic revenue growth rates of between 5 and 7 percent in our base businesses between now and 2025," he added.
Karleen Oberton, Hologic's CFO, said on the conference call that during the quarter, its molecular diagnostics segment underwent "massive growth internationally that more than offset the decline in US COVID sales." The firm shipped about 14 million SARS-CoV-2 tests to customers, generating assay revenue of $291 million globally, with about two-thirds outside the US, Oberton added.
The firm reported a net income of $268.1 million, or $1.04 per share, for Q3 2021, compared to a net income of $137.9 million, or $.53 per share, a year ago. Adjusted EPS for the quarter was $1.33 per share and beat the analysts' average estimate of $1.12 per share.
Hologic's Q3 2021 R&D spending rose 25 percent year over year to $69.0 million from $55.1 million, and its SG&A spending also rose 25 percent to $260.0 million from $208.8 million.
The company finished fiscal Q3 with $827.6 million in cash and cash equivalents.
For fiscal Q4, the firm is guiding to revenues of between $1.00 billion and $1.04 billion, which would represent an increase of between 22.8 percent and 25.8 percent year over year. EPS is anticipated to be between $.63 and $.71, and adjusted EPS is expected to be between $.92 and $1.00.
In early Thursday morning trading on the Nasdaq, Hologic shares were up more than 1 percent to $72.96.