Hologic (HOLX) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $1.011 billion, up 2.7% year-over-year, exceeding guidance, with non-GAAP EPS of $1.06, up 14% year-over-year.

• Organic revenue excluding COVID-19 grew 5.8% year-over-year, with strong performance in Diagnostics, Breast Health, and Surgical segments.

• Net income for Q3 was $194.5 million, compared to a net loss of $40.5 million in Q3 2023, reflecting improved operating performance.

• Operating margin was 31.2% (non-GAAP), up 230 basis points year-over-year; GAAP operating margin improved to 24.1%.

• Closed Endomagnetics acquisition, expanding breast surgery localization technologies.

Financial highlights

• Diagnostics revenue was $440.8 million, up 0.7%; molecular diagnostics (ex-COVID) grew 10.5%.

• Breast Health revenue was $385 million, up 7.1%, driven by imaging and service growth.

• Surgical revenue reached $166.6 million, up 6.2%, with international growth just under 20%.

• Gross margin improved to 61.1% (non-GAAP), up 30 basis points year-over-year; GAAP gross margin was 55.4%.

• Generated over $400 million in operating cash flow in Q3; ended with $2.4 billion in cash.

Outlook and guidance

• Q4 2024 revenue expected between $970 million and $985 million; non-GAAP EPS of $0.97–$1.04.

• FY2024 revenue guidance is $4.012–$4.027 billion; non-GAAP EPS of $4.04–$4.11.

• Organic revenue excluding COVID-19 projected to grow 5.2–5.8% for FY24.

• Guidance reflects a $20 million headwind from a temporary skeletal health stop ship, partially offset by Endomagnetics revenue.

• Four fewer selling days in FY24 expected to be a headwind of over 100 bps.