Hologic (HOLX) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue reached $4.03 billion, with Q4 revenue of $987.9 million and non-GAAP EPS of $1.01, reflecting strong performance and exceeding guidance.

• Organic revenue excluding COVID-19 grew 5.3% year-over-year, with diagnostics, breast health, and surgical segments driving growth.

• The company executed tuck-in acquisitions (Endomagnetics, Gynesonics) and continued share repurchases, supporting long-term shareholder value.

• Strong balance sheet with $2.4 billion in cash and investments at year-end and robust free cash flow generation.

• Consistently delivered on revenue and EPS guidance for 14 consecutive quarters despite macroeconomic headwinds.

Financial highlights

• Q4 revenue was $987.9 million, up 4.5% year-over-year (4.2% in constant currency); non-GAAP EPS grew 13.5%.

• Q4 gross margin increased to 61.5% (up 110 bps YoY); operating margin at 30%, net margin at 24%.

• Adjusted EBITDA for Q4 was $323.7 million, up 12.3% year-over-year.

• Full-year revenue declined 0.2% but grew 5.3% organically ex-COVID; non-GAAP EPS up 3%.

• Cash flow from operations was $367.1 million in Q4.

Outlook and guidance

• FY2025 revenue guidance: $4.15–$4.20 billion; non-GAAP EPS: $4.25–$4.35.

• Q1 FY2025 revenue expected at $1.025–$1.035 billion; non-GAAP EPS: $1.00–$1.03.

• Organic ex-COVID growth for FY2025 guided at ~4% midpoint, with growth accelerating in the back half.

• Gross margin expected to improve by ~50 bps in FY2025; operating margin to expand by 50–100 bps.

• Guidance incorporates the impact of the Endomagnetics acquisition and the temporary stop-ship of Horizon DXA systems.