Upcoming AWS Coverage on Masimo Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 26, 2017 / Active Wall St. announces its post-earnings coverage on Hologic, Inc. (NASDAQ: HOLX). The Company announced its financial results for the second quarter fiscal 2017 (Q2 FY17) on May 10, 2017. The Marlborough, Massachusetts-based Company's total revenues and non-GAAP diluted EPS grew 3.2% and 6.4% y-o-y, respectively; outperforming market consensus estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Hologic's competitors within the Medical Appliances & Equipment space, Masimo Corp. (NASDAQ: MASI), reported on May 03, 2017, its financial results for the first quarter ended April 01, 2017. AWS will be initiating a research report on Masimo in the coming days.

Today, AWS is promoting its earnings coverage on HOLX; touching on MASI. Get our free coverage by signing up to:
http://www.activewallst.com/register/.

Earnings Reviewed

For the three months ended on April 01, 2017, Hologic' total revenues were $715.4 million, up from $693.3 million reported in the prior year's corresponding quarter. Total revenues for the reported quarter topped analysts' forecasts of $685.4 million. On a constant currency basis, the Company's total revenues grew 3.8% y-o-y. Furthermore, base business' (excluding the effects of sale of blood screening and the acquired Cynosure business) revenue increased 4.7%, or 5.4% y-o-y in constant currency terms, in Q2 FY17.

Hologic's GAAP net income surged during Q2 FY17 to $526.8 million, or $1.84 per diluted share, from $68.9 million, or $0.24 per diluted share, in Q2 FY16. The Company's non-GAAP net income for Q2 FY17 stood at $142.7 million, or $0.50 per diluted share, compared to $135.7 million, or $0.47 per diluted share, in Q2 FY16. Wall Street had expected the Company to report non-GAAP net income of $0.46 per diluted share.

Operating Metrics

In Q2 FY17, Hologic's GAAP gross profit came in at $388.7 million, or 54.3% of total revenues, versus $385.0 million, or 55.5% of total revenues, in Q2 FY16. Furthermore, non-GAAP gross profit for the reported quarter came in at $457.1 million, or 63.9% of total revenues, compared to $456.3 million, or 65.8% of total revenues in the prior year's same quarter.

Hologic's GAAP income from operations surged to $999.8 million, or 139.8% of total revenues, in Q2 FY17 from $136.1 million, or 19.6% of total revenues, in Q2 FY16. During the reported quarter, the Company has reported one-time gain of $899.7 million on sale of its blood screening business. Moreover, the Company's Q2 FY17 non-GAAP income from operations came in at $234.1 million, or 32.7% of total revenues, compared to $235.1 million, or 33.9% of total revenues, in Q2 FY16. The Company's adjusted EBITDA for Q2 FY17 stood at $255.9 million, rising 0.8% from $253.8 million in Q2 FY16.

Segment Revenues

During Q2 FY17, total Diagnostics revenues fell 2.8% y-o-y to $296.0 million due to sale of its blood screening business, whereas total Breast Health revenues improved 1.7% y-o-y to $280.5 million. Revenues from its GYN Surgical segment surged rose 11.2% y-o-y in Q2 FY17 to $101.1 million. However, Skeletal Health segment's revenues were down by 1.6% y-o-y during the reported quarter to $21.8 million. Furthermore, the Company newly acquired Medical Aesthetics business reported total revenues of $16.0 million in Q2 FY17.

Cash Flow & Balance Sheet

During the first half of FY17, the Company generated $253.4 million of cash from operating activities versus $322.3 million in the prior-year's comparable period. Moreover, the Company's operating cash flow and free cash flow cash for the reported quarter came in at $83.8 million and $58.7 million, respectively.
As on April 01, 2017, the Company had $1.13 billion in cash and cash equivalents compared to a balance of $548.4 million as on September 24, 2016. Additionally, the Company reported long-term debt of $2.23 billion in its books as on April 01, 2017 down from $3.05 billion as on September 24, 2016.

Outlook

Based on its performance in Q2 FY17, the Company updated its financial guidance for full-year FY17. Hologic's management now expects total revenues for full year FY17 to be in the range of $3.05 billion to $3.08 billion, up from previously provided guidance range of $2.79 billion to $2.83 billion. GAAP EPS for FY17 is predicted to be between $2.44 and $2.48, while non-GAAP EPS for FY17 is projected to be in the range of $1.98 to $2.02.

For Q3 FY17, the Company estimates total revenues to be between $790 million and $805 million with GAAP EPS in the range of $0.22 to $0.24. Furthermore, non-GAAP EPS for Q3 FY17 is anticipated to be in the range of $0.48 to $0.50.

Stock Performance

At the close of trading session on Thursday, May 25, 2017, Hologic's share price finished the trading session at $43.50, rising 1.16%. A total volume of 2.30 million shares exchanged hands. The stock has soared 13.08% and 29.43% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 8.42%. The stock is trading at a PE ratio of 15.69 and currently has a market cap of $12.20 billion.

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SOURCE: Active Wall Street