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Benzinga
Benzinga
Business
Vandana Singh

Hologic Q1 FY22 Sales Decline 9% On Lower COVID-19 Assay Sales; Issues Upbeat FY22 Outlook

Hologic Inc (NASDAQ:HOLX) reported Q1 FY22 sales of $1.47 billion, beating the consensus of $1.18 billion and the company's expectations of $1.1 billion - $1.15 billion.

  • The sales declined 8.6% Y/Y (8.2% in constant currency), driven by lower sales of COVID-19 assays.
  • In the earnings conference call, the company noted that $523 million came in from COVID assay sales, over $300 million more than the outlook and consensus.
  • The diagnostics division reported revenues of $950.4 million, down 15.8% (-15.2% in CC). Excluding COVID-19 revenues, the diagnostics division posted Q1 revenues of $320.8 million, up 10% Y/Y.
  • Hologic reported adjusted EPS of $2.17, down 24.1% Y/Y, and beat Street view of $1.28.
  • Guidance: For Q2 FY22, Hologic expects revenues of $1.25 billion - $1.30 billion and adjusted EPS of $1.50 - $1.60, above the consensus of $998.87 million and $0.95, respectively.
  • For FY22, Hologic guided revenues of $4.40 billion - $4.55 billion (consensus of $4.02 billion), compared to its previous guidance of $3.75 billion - $4.00 billion.
  • It expects an adjusted EPS of $4.90 - $5.20 (previous guidance $3.55 - $3.85), compared to the consensus of $3.83.
  • The company expects to book at least $400 million in COVID-19 assay revenues in Q2 FY22 and at least $1 billion in FY22.
  • Hologic expects the increasing diversity of its breast business to help offset recent supply chain challenges, specifically shortages of computer chips in mammography.
  • In addition, the company expects diagnostics and surgical businesses, along with COVID contributions, to more than offset the market headwinds.
  • Price Action: HOLX shares closed higher by 2.31% at $72.16 on Wednesday.
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