Hologic 2025 Q2 Earnings Misses Targets as Net Income Plummets 110.2%
Saturday, May 3, 2025 5:10 am ET
3min read Hologic (HOLX) reported its fiscal 2025 Q2 earnings on May 2nd, 2025. The company experienced a 1.2% decrease in total revenue, down to $1.01 billion from $1.02 billion in the same quarter the previous year. Hologic's earnings per share (EPS) fell significantly to a loss of $0.08, compared to a profit of $0.72 per share in the previous year. Adjusted EPS was flat at $1.03, slightly above the high end of guidance but overshadowed by the GAAP loss. Guidance adjustments saw annual revenue expectations maintained, while both GAAP and non-GAAP EPS projections were lowered.
Revenue
Hologic reported a total revenue of $1.01 billion in fiscal 2025 Q2, marking a 1.2% decline from the prior year. Within the segments, Diagnostics revenue amounted to $453.60 million, while Breast Health contributed $356.20 million. The GYN Surgical segment generated $162.50 million, and Skeletal Health delivered $33 million.
Earnings/Net Income
For the quarter, hologic swung to a net loss of $17.40 million from a net income of $169.90 million in the prior year, marking a 110.2% decrease. The EPS performance indicates a troubling downward trend, primarily attributed to non-cash impairment charges.
Price Action
The stock price of Hologic has edged down 2.08% during the latest trading day, dropped 6.65% during the most recent trading week, and tumbled 11.76% month-to-date.
Post-Earnings Price Action Review
Following Hologic's earnings report, the stock experienced a mixed reaction. The company reported $1.005 billion in revenue for Q2 2025, a slight beat over guidance but a 1.2% decrease from Q2 2024, which contributed to investor concerns. The significant decline in net income to a loss of $17.4 million from the previous year's positive $169.9 million likely had a negative impact on investor sentiment. While the non-GAAP EPS of $1.03 remained stable, the GAAP diluted EPS reported as a loss due to non-cash impairment charges overshadowed any positive aspects. The overall market focus on Hologic's negative net income and impairment charges seems to have outweighed the slight revenue beat and flat EPS, culminating in a decline in the stock price.
CEO Commentary
“We delivered on our financial commitments in the second quarter,” said Stephen P. MacMillan, Chairman, President, and CEO of Hologic. The company reported revenue and non-GAAP EPS at the high ends of guidance, driven by strong performance in diagnostics and skeletal businesses, robust profitability, share buybacks, and a slightly lower tax rate. Despite a slight revenue decline of 1.2% compared to the prior year, organic diagnostics sales excluding COVID-19 grew by 4.5%. Challenges were noted in breast health revenue, which decreased primarily due to lower capital equipment sales.
Guidance
Hologic maintains its annual revenue guidance while lowering its expectations for both GAAP and non-GAAP EPS. The company guided for non-GAAP EPS in the range of $1.00 to $1.03 for the upcoming quarters. Overall, Hologic remains focused on driving growth through strategic investments in its molecular diagnostics and surgical segments, while navigating challenges in specific business areas.
Additional News
Hologic has continued its strategic share buyback program, repurchasing 3 million shares for $200 million during the second quarter of fiscal 2025. This move is part of the company's ongoing efforts to return value to shareholders amidst a challenging economic environment. Additionally, the company is navigating geopolitical challenges and tariff pressures, which have influenced its decision to lower earnings guidance. Despite these headwinds, Hologic remains committed to its growth strategy, focusing on key segments like molecular diagnostics and surgical solutions to bolster its market position. The ongoing challenges underscore the importance of strategic planning and adaptability in the current business landscape.
Revenue
Hologic reported a total revenue of $1.01 billion in fiscal 2025 Q2, marking a 1.2% decline from the prior year. Within the segments, Diagnostics revenue amounted to $453.60 million, while Breast Health contributed $356.20 million. The GYN Surgical segment generated $162.50 million, and Skeletal Health delivered $33 million.
Earnings/Net Income
For the quarter, hologic swung to a net loss of $17.40 million from a net income of $169.90 million in the prior year, marking a 110.2% decrease. The EPS performance indicates a troubling downward trend, primarily attributed to non-cash impairment charges.
Price Action
The stock price of Hologic has edged down 2.08% during the latest trading day, dropped 6.65% during the most recent trading week, and tumbled 11.76% month-to-date.
Post-Earnings Price Action Review
Following Hologic's earnings report, the stock experienced a mixed reaction. The company reported $1.005 billion in revenue for Q2 2025, a slight beat over guidance but a 1.2% decrease from Q2 2024, which contributed to investor concerns. The significant decline in net income to a loss of $17.4 million from the previous year's positive $169.9 million likely had a negative impact on investor sentiment. While the non-GAAP EPS of $1.03 remained stable, the GAAP diluted EPS reported as a loss due to non-cash impairment charges overshadowed any positive aspects. The overall market focus on Hologic's negative net income and impairment charges seems to have outweighed the slight revenue beat and flat EPS, culminating in a decline in the stock price.
CEO Commentary
“We delivered on our financial commitments in the second quarter,” said Stephen P. MacMillan, Chairman, President, and CEO of Hologic. The company reported revenue and non-GAAP EPS at the high ends of guidance, driven by strong performance in diagnostics and skeletal businesses, robust profitability, share buybacks, and a slightly lower tax rate. Despite a slight revenue decline of 1.2% compared to the prior year, organic diagnostics sales excluding COVID-19 grew by 4.5%. Challenges were noted in breast health revenue, which decreased primarily due to lower capital equipment sales.
Guidance
Hologic maintains its annual revenue guidance while lowering its expectations for both GAAP and non-GAAP EPS. The company guided for non-GAAP EPS in the range of $1.00 to $1.03 for the upcoming quarters. Overall, Hologic remains focused on driving growth through strategic investments in its molecular diagnostics and surgical segments, while navigating challenges in specific business areas.
Additional News
Hologic has continued its strategic share buyback program, repurchasing 3 million shares for $200 million during the second quarter of fiscal 2025. This move is part of the company's ongoing efforts to return value to shareholders amidst a challenging economic environment. Additionally, the company is navigating geopolitical challenges and tariff pressures, which have influenced its decision to lower earnings guidance. Despite these headwinds, Hologic remains committed to its growth strategy, focusing on key segments like molecular diagnostics and surgical solutions to bolster its market position. The ongoing challenges underscore the importance of strategic planning and adaptability in the current business landscape.
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