Hologic Posts Loss In Q1, But Results Beat View; Lifts Low End Of Profit Outlook

(RTTNews) - Medical device maker Hologic Inc. (HOLX) on Monday reported a loss for the first quarter, hurt by higher restructuring and divestiture charges as well as lower revenues, while the prior-year quarter's results includes a one-time gain. However, both revenue and adjusted earnings for the quarter beat analysts' expectations.

Looking ahead, the company forecast financial results for the second quarter in line with analysts' estimates. In addition, the company raised the lower end of its earnings outlook for fiscal 2014, while maintaining its revenue forecast for the year.

Stephen MacMillan, President and Chief Executive Officer of Hologic, said, "While we delivered on our commitments in the quarter, we clearly have work to do to return to sustainable top and bottom line growth. Looking forward, I am energized by our unique collection of leading product technologies and a deeply committed and passionate employee base to drive organic growth."

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 first-quarter net loss of $5.35 million or $0.02 per share, compared to net income of $3.12 million or $0.01 per share in the same period last year.

The latest quarter's results include restructuring and divestiture charges of $18.35 million, compared to charges of $3.93 million in the year-ago period. In addition, the prior-year quarter's results include a gain on sale of intellectual property of $53.88 million.

Excluding items, adjusted net income for the quarter was $94.15 million or $0.34 per share, compared with $101.78 million or $0.38 per share in the year-ago period. On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.31 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter declined 3 percent to $612.45 million from $631.36 million in the prior-year period. Adjusted revenues for the quarter declined 5 percent from $644.6 million last year. Analysts had a consensus revenue estimate of $609.65 million for the quarter.

The prior-year quarter's results include revenues of $12.6 million from the Lifecodes business, which the company sold in March 2013.

Diagnostics revenue for the quarter declined 7 percent to $285.8 million primarily reflecting the divestiture of the Lifecodes business, while breast health revenues grew 3 percent to $226.5 million increased sales of 3D Dimensions systems.

GYN Surgical revenues decreased 3 percent to $78.9 million as significant growth in MyoSure system sales was offset by lower NovaSure system sales. Skeletal Health revenues declined 10 percent to $21.3 million, resulting from decreases in sales of bone densitometry and mini C-arm systems.

Looking ahead to the second quarter, Hologic forecast adjusted earnings in the range of $0.32 to $0.34 per share, and revenue of $605 million to $615 million that represents a decrease of 1 percent to 2 percent over the year-ago period. Analysts currently expect the company to earn $0.33 per share for the quarter on revenue of $606.48 million.

The decrease in revenues is expected primarily from a decline in sales of ThinPrep pap tests and NovaSure systems, as well as the elimination of revenues from Lifecodes, which were $10.6 million in the prior-year period. This decrease is expected to be partially offset by the continued ramp-up of new products including 3D Dimensions, molecular assays, and MyoSure systems.

For fiscal 2014, Hologic now forecasts adjusted earnings of $1.34 to $1.38 per share, compared to the prior range of $1.32 to 1.38 per share. However, the company maintained its outlook for revenues of $2.425 billion to $2.475 billion, representing a decrease of 1 percent to 3 percent over the prior year.

Analysts currently expect earnings of $1.36 per share for the year on revenue of $2.46 billion.

Hologic stock closed Monday's regular trading session at $20.47, down $0.89 or 4.17 percent on a volume of 4.54 million shares. However, in after-hours, the stock gained $0.73 or 3.57 percent to $21.20.