Hologic's Mixed Q1 FY25 Results: Growth in Diagnostics, Challenges in Breast Health and Skeletal Health

Hologic, Inc. (Nasdaq: HOLX) announced preliminary revenue results for its first fiscal quarter of 2025, revealing a mixed performance with revenue growth of 0.9% year-over-year, or 1.0% in constant currency. The company expects GAAP and non-GAAP earnings per share to be near the high end of guidance ranges despite currency headwinds that reduced revenue by approximately $9 million. Here's a closer look at the key takeaways and visualizations from the results.



Diagnostics Division Leads Growth

Hologic's Diagnostics division remained the primary growth driver, contributing $470.6 million in revenue. Organic growth excluding COVID-19 was robust at 9.0%, demonstrating successful market penetration in routine testing. The division's strong performance was driven by the addition of Endomagnetics, which contributed to the increase in revenue.



Breast Health Weakness Continues

Breast Health revenue declined 2.3% to $369.1 million, marking a concerning trend for the company. The decline can be attributed to several factors, including the divestment of the SSI ultrasound imaging business, the acquisition of Endomagnetics, which was not yet included in organic revenue, and the strengthening of the U.S. dollar, which reduced revenue by approximately $9 million.



Skeletal Health Faces Significant Decline

Skeletal Health revenue saw a significant decline of 37.8% to $15.8 million. This substantial drop can be attributed to market dynamics, sector-wide pressures, and the company's focus on core women's health portfolio and strategic acquisitions. The decline in Skeletal Health revenue may also be indicative of broader market trends.



Competitive Positioning and Market Dynamics

Hologic's competitive positioning remains solid in key segments, with the core women's health portfolio maintaining steady performance despite macroeconomic headwinds. The company's strategic acquisitions, such as Endomagnetics, have partially offset organic declines. However, market dynamics are shifting, with COVID-19 revenue continuing to decline as expected, now representing only 4.3% of total revenue.



In conclusion, Hologic's Q1 FY25 preliminary results reveal a mixed performance, with growth in the Diagnostics division offset by challenges in Breast Health and Skeletal Health. The company's strategic acquisitions have partially offset organic declines, but market dynamics are shifting, and investors should monitor the company's progress in addressing these challenges. Hologic plans to provide full financial results and updated guidance for Q2 and full-year FY2025 on February 5, 2025.