Hologic (HOLX) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $987.9 million, up 4.5% year-over-year, with non-GAAP EPS of $1.01 and full-year revenue of $4.03 billion; organic revenue ex-COVID grew 5.3% year-over-year.

• Business growth was broad-based, led by Diagnostics, Breast Health, and Surgical segments, with a focus on workflow automation and international expansion.

• Key acquisitions included Endomagnetics (closed July 2024) and a definitive agreement to acquire Gynesonics, both expanding the interventional portfolio.

• Announced a $250 million accelerated share repurchase program, following $808 million in share repurchases in 2024.

• Maintains a strong balance sheet with over $2.4 billion in cash and investments at year-end.

Financial highlights

• Q4 revenue grew 4.5% year-over-year (5% organically ex-COVID); non-GAAP EPS grew 13.5%.

• Q4 non-GAAP gross margin was 61.5% (+110 bps YoY); operating margin 30% (+170 bps YoY); net margin 24%.

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

• Full-year organic revenue ex-COVID reached $3.81 billion, 30% higher than 2019.

• Q4 tax rate was 19.75%.

Outlook and guidance

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

• Q1 2025 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 Endomagnetics acquisition and temporary stop-ship of Horizon DXA systems.