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Hologic Q3 Revenues Grow 10 Percent; Firm Increases 2015 Revenue, EPS Guidance

NEW YORK (GenomeWeb) – Hologic reported after the close of the market on Wednesday that revenues for its fiscal third quarter were up 10 percent year over year. 

For the three months ended June 27, the firm posted total revenues of $693.9 million, up from $632.6 million in Q3 2014, and easily beat the consensus Wall Street estimate of $654 million. On a constant currency basis, revenues grew 12 percent year over year. 

US revenues increased almost 13 percent year over year, while international revenues were up a fraction of 1 percent. On a constant currency basis, revenues grew in the double digits both in the US and internationally, the firm said. 

Molecular diagnostic revenues increased about 7 percent to $124.6 million. On a constant currency basis growth was 9 percent, Hologic said, as Aptima women's health products saw continued strength on the Panther and Tigris platforms. In the US, molecular diagnostic revenues rose nearly 13 percent. 

On Hologic's conference call following the release of its financial results, Hologic Chairman, President, and CEO Steve MacMillan noted that Q3 2015 was the third consecutive quarter in which the growth rate in MDx accelerated. 

"All of our key women's health assays for chlamydia and gonorrhea, [human papillomavirus], and trichomonas grew solidly in the quarter, and all won important new competitive accounts," MacMillan said, adding that the Panther instrument continued to see new adoptions in the quarter. Placements of the instrument were "robust" in Q3, and Hologic has now shipped "well over 1,000" Panther units to clinical diagnostics and blood screening customers. 

While MacMillan said that overall market dynamics in the MDx space helped accelerate Hologic's growth in the market, "we continue to feel really good, certainly about our position in HPV and our Panther systems."  

Hologic CFO Robert MacMahon added on the call that the firm believes that in HPV, it is now "number one in that marketplace in the US." 

MacMillan said that upgrades to the Panther are in the works that will allow the firm to run more assays for prostate cancer antigens, but those remain "a few years away, we're in the earlier stages there." 

Meanwhile, blood screening revenues from Hologic's partner Grifols rose 19 percent to $64.2 million, primarily from new business with the Japanese Red Cross, the company said. 

In total, the Diagnostics segment, which also includes cytology and perinatal sales, grew 5 percent to $306.9 million from $293.1 million in Q3 2014. 

Among Hologic's other segments, Breast Health revenues totaled $279.5 million, an 18 percent jump year over year, while Gyn Surgical revenues rose 9 percent to $85.5 million, and Skeletal Health declined 5 percent to $22 million. 

Hologic posted a profit of $29.4 million, or $.10 per share, for the third quarter, compared to a profit of $11.3 million, or $.04 per share, a year ago. On a non-GAAP basis, EPS was $.43, beating the consensus Wall Street estimate of $.39. 

Its R&D costs increased 7 percent year over year to $56 million from $52.5 million, while its SG&A costs rose 13 percent $167.4 million from $147.7 million. Hologic also took restructuring and divestiture charges of $11.9 million for the recently completed quarter, compared to $6.7 million a year ago. 

The company exited the quarter with $885 million in cash and cash equivalents, and $3.8 million in restricted cash.  

For the fiscal fourth quarter, Hologic said that it anticipates revenues to be in the range of $685 million to $695 million, with non-GAAP EPS expected to be in the range of $.41 to $.42. 

For fiscal full-year 2015, the company provided revenue guidance to a new range of between $2.69 billion and $2.70 billion compared to a prior range of $2.60 billion and $2.62 billion. 

Non-GAAP EPS guidance for fiscal 2015 was raised to a new range of $1.65 to $1.66 from a prior range of $1.57 to $1.59. 

In Thursday morning trade on the Nasdaq, shares of Hologic climbed 10 percent to $41.85.