Shares of Hologic Inc. (HOLX) experienced a decline of over 3% during after-hours trading on Monday. The medical technology company, however, exceeded Wall Street’s expectations for its fiscal third quarter and made slight adjustments to its guidance for the fiscal year and fourth quarter.
Impressive Performance Despite Challenges
In contrast to the year-ago period, Hologic reported a loss of $40.5 million, or 16 cents per share, for the quarter. However, after adjusting for one-time items, the company earned 93 cents per share. While revenue decreased by 2% to $984.4 million, primarily driven by lower sales of COVID-19 assays compared to the previous year, this outcome was in line with the company’s projections.
Beating Analyst Estimates
When compared to analysts’ expectations, Hologic’s performance was particularly noteworthy. According to a FactSet survey, the company was anticipated to report adjusted earnings per share (EPS) of 89 cents on sales of $960 million. However, Hologic surpassed these estimates by achieving adjusted EPS of 93 cents and exceeding the sales forecast with a reported $984.4 million in revenue.
Revised Guidance for Fiscal 2023
Hologic provided an updated outlook for fiscal year 2023, expecting revenue to fall between $3.995 billion and $4.035 billion. This guidance reflects higher expectations from the previously estimated range of $3.925 billion to $4.025 billion. Adjusted EPS for the year is projected to be between $3.87 and $3.94, showcasing a slight increase compared to the initial range of $3.75 to $3.95.
Fourth Quarter Outlook
For the fourth quarter of the fiscal year, Hologic forecasts revenue of $910 million to $950 million and adjusted EPS ranging from 80 cents to 87 cents. Analysts surveyed by FactSet anticipated adjusted earnings of 87 cents per share on sales of $949 million for the same period.
CEO Optimistic About Company Performance
Chief Executive Steve MacMillan expressed confidence in Hologic’s performance, stating, “Hologic again delivered solid, diversified growth in our fiscal third quarter, excluding the impact of COVID. Our results once again highlight that Hologic’s transformation and post-pandemic performance is durable.”
Hologic’s impressive fiscal third-quarter results and the subsequent adjustments to its guidance for fiscal year 2023 indicate that the company is on a positive trajectory. Despite challenges posed by the pandemic, Hologic continues to showcase resilience and growth potential in the medical technology sector.