Hologic Q2 Results Top Estimates, Boosts 2014 Outlook

(RTTNews) - Medical imaging systems company Hologic Inc. (HOLX) reported Wednesday a net loss for the second quarter that narrowed from last year, reflecting lower operating expenses and revenue growth. Striping down charges, adjusted earnings per share and quarterly revenues topped analysts' expectations.

The company also provided earnings and revenue guidance for the third quarter, in line with Street view, and raised earnings and revenue forecast for the full-year 2014.

"Second quarter results reflect early progress towards our renewed focus on executional discipline as we drive to our goal of sustainable organic growth. Our key product lines, such as Hologic's unique 3D mammography and Aptima HPV, gained momentum during the quarter," President and CEO Stephen MacMillan said in a statement.

The Bedford, Massachusetts-based company reported a net loss of $16.77 million or $0.06 per share for the second quarter, narrower than $51.10 million or $0.19 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $103.11 million or $0.37 per share, compared to $93.85 million or $0.35 per share in the year-ago quarter.

On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 2 percent to $625.01 million from $612.66 million in the same quarter last year, and topped nineteen Wall Street analysts' consensus estimate of $609.25 million.

Excluding Lifecodes revenues, adjusted revenues increased 1.0 percent from last year's $619.09 million. Fluctuation in foreign currency exchange rates added 40 basis points to revenues.

Breast health revenues grew 8.5 percent to $238.7 million, while diagnostics revenues decreased 1.9 percent to $290.8 million and GYN surgical revenues declined 2.2 percent to $72.0 million from last year. Skeletal health revenues improved 4.7 percent to $23.5 million from last year.

Total operating expenses for the quarter declined to $231.86 million from $273.78 million in the same year-ago quarter.

Looking ahead to the third quarter, the company expects adjusted earnings in a range of $0.33 to $0.34 per share, on projected revenues between $615 million and $625 million. Analysts expect the company to report earnings of $0.34 per share on revenues of $616.75 million for the quarter.

For fiscal 2014, the company raised its adjusted earnings guidance to a range of about $1.37 to $1.40 per share from the prior forecast of about $1.34 to $1.38 per share. The company also now anticipates revenues between $2.46 billion and $2.49 billion, up from the previous projection between $2.425 billion and $2.475 billion.

Street is currently looking for full-year 2014 earnings of $1.37 per share on annual revenues of $2.46 billion.

"However, I am excited by how our sales teams are responding to help achieve progress towards our primary objectives: leveraging our unique collection of leading technologies to drive organic growth and focusing our capital allocation efforts on debt reduction," MacMillan added.

HOLX closed Wednesday's regular trading session at $20.99, up $0.02 or 0.07% on a volume of 3.22 million shares. The stock gained a further $0.87 or 4.12% in after-hours trading.