Hologic’s third-quarter earnings beat expectations despite chip shortage

Steve MacMillan, CEO of Hologic [Photo courtesy of Hologic]

Hologic (Nasdaq:HOLX) today released third-quarter results that beat consensus forecasts on Wall Street and lifted its outlook for the rest of the year.

Marlborough, Mass.-based Hologic reported earnings of $228.4 million, or $0.90 per share, on sales of $1 billion for the three months ended June 25, 2022. Compared to the third quarter of 2021, profits decreased by 14.8% while sales decreased by 14.2%.

Hologic said the decline in revenue was primarily due to lower international sales of COVID-19 tests and ongoing semiconductor shortages affecting the company’s breast health business.

Adjusted to exclude one-time items, earnings per share were $0.95, $0.24 above analysts’ expectations on Wall Street, who were looking for EPS of $0.71 on sales of $907.22 million.

“With the strength of our core business, a natural hedge against COVID outbreaks, as well as a strengthened balance sheet and robust cash flow, we have great confidence in our business,” said Chairman, President and Chief Executive Officer. of Hologic executive Steve MacMillan in a press release.

Hologic said it expects to report adjusted EPS of $5.79 to $5.84 this year, up from a previous forecast of $5.45 to $5.65. The company also raised its revenue outlook to a range of $4.75-4.78 billion from $4.6-4.7 billion previously.

Profile of Hologic's Chief Financial Officer, Karleen Oberton
Karleen Oberton, CFO of Hologic [Photo courtesy of Hologic]

“Our fiscal 2022 third quarter was financially very strong, with performance exceeding expectations in both revenue and EPS,” Hologic Chief Financial Officer Karleen Oberton said in the statement. “In our fourth fiscal quarter, we expect continued strength in our diagnostic and core surgical businesses to offset supply chain headwinds in our breast health business.”

The news sent HOLX shares up less than 1% from the day’s close of $70.94 to $71.20 in after-hours trading.

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