Hologic shares droop despite Q1 beat

Shares in Hologic (NSDQ:HOLX) fell today in after hours trading despite the medical device maker beating expectations on Wall Street with its 1st quarter results.

The Marlborough, Mass.-based company posted profits of $86.5 million, or 30¢ per share, on sales of $734 million for the 3 months ended December 31, for bottom-line growth of 1.9% while sales grew 5.6% compared with the same period in the previous year.

Adjusted to exclude 1-time items net profits were $148.1 million and earnings per share were 52¢, ahead of consensus on The Street where analysts were looking for revenue of $724 million.

“We are pleased with our first quarter financial results. Revenue and earnings per share exceeded our guidance.  Our international businesses continued to improve, while new products are in the early stages of adding to growth.  And we completed the divestiture of our blood screening business, which we expect to accelerate top- and bottom-line growth,” prez & CEO Steve MacMillan said in a prepared statement.

The company lowered its guidance for the full year, with expectations for revenue lowering from between $2.94 and $2.98 billion to between $2.79 and $2.86 billion. EPS expectations for the year were also lowered from previously released guidance of between $2.12 and $2.16 to between $1.90 and $1.94.

Hologic released guidance for the upcoming quarter, expecting to see revenue of between $675 and $685 million and earnings per share between 45¢ and 46¢.

“We are updating our 2017 financial guidance based on our good first-quarter results, the divestiture of our blood screening business, and a revenue headwind of more than $20 million from a stronger U.S. dollar. Underlying our forecast, our expectations for our ongoing, base business are consistent with our initial constant currency guidance. Going forward, we forecast that the divestiture of the blood screening business will accelerate both our top- and bottom-line growth rates,” CFO Bob McMahon said in a press release.

HOLX shares have dipped approximately 1.4% to $40.29 in after hours trading as of 5:14 p.m. EST, after rising 0.8% during the day to close at $40.85.

The post Hologic shares droop despite Q1 beat appeared first on MassDevice.

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