Hologic Loss Widens On Charges, Outlook Weak; Stock Down - Update

(RTTNews) - Medical device maker Hologic Inc. (HOLX), Monday reported a wider loss for the fourth quarter, hurt by impairment charges, even as revenue improved. Excluding items, the company registered a profit that topped Wall Street estimates, while revenue missed expectations.

Hologic provided weak outlook for the first quarter and full year 2014, partly due to lower sales of NovaSure systems and ThinPrep pap tests.

Investors were dismayed with the announcement and shares of the company dropped more than 7 percent in after-hours trade on the Nasdaq.

Separately, the Hologic board authorized the repurchase of up to $250 million of Hologic's outstanding common stock over the next three years.

Hologic makes diagnostics products, medical imaging systems and surgical products, with an emphasis on serving the needs of women.

The Bedford, Massachusetts-based company posted fourth-quarter net loss of $1.1 billion or $4.11 per share, compared with a net loss of $77.8 million or $0.29 per share last year.

Results for the quarter included impairment charges of $1.66 billion, mainly related to its Diagnostic business segment, compared with charges of $632 million in the prior year.

Excluding items, adjusted earnings for the quarter were $107.6 million or $0.39 per share, compared with $98 million or $0.37 per share a year ago. On average, 23 analysts polled by Thomson Reuters estimated earnings of $0.37 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the fourth quarter improved 5.7 percent to $622 million from $588.5 million in the prior year.

Analysts had a consensus revenue estimate of $624.42 million for the quarter.

The revenue growth reflects the inclusion of a full quarter of Gen-Probe revenues, strong US placements of 3D Dimensions tomosynthesis systems, and higher sales of MyoSure hysteroscopic tissue removal systems, among others.

Meanwhile, for the first quarter, Hologic expect adjusted earnings in the range of $0.30 to $0.31 per share and revenue of $600 million to $610 million. Analysts currently expect earnings of $0.40 per share on revenue of $642.41 million for the quarter.

For 2014, Hologic estimates adjusted earnings of $1.32 to 1.38 per share and revenue of $2.425 billion to $2.475 billion. Analysts currently expect earnings of $1.64 per share on revenue of $2.59 billion for the year.

Hologic stock closed Monday at $22.90, up $0.86 or 3.90%, on a volume of 4.6 million shares on the Nasdaq. In after hours, the stock dropped $1.65 or 7.20%, trading at $21.25. In the past year, the share traded in the range of $18.46 - $23.96.