Hologic revenue decrease slows after post-COVID drop off

Photo | Grant Welker Hologic's Marlborough headquarters

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By Isabel Tehan

Marlborough medical technology company Hologic Inc. reported a 28.5% decrease in revenue in the second quarter, as compared to the same time period last year. At $1.02 billion for the quarter, revenue was still higher than the company’s guidance of $930 to $980 million provided last quarter, according to its financial results report released on Monday.

While revenue is still at a substantially decreased level as compared to the previous fiscal year, the amount it fell in the second quarter is significantly less than the first quarter decrease of 41.2%. That fall is because during the coronavirus pandemic Hologic pivoted to develop U.S. Food and Drug Administration-authorized COVID testing systems. Typically, it specializes in women’s health products. At the end of 2020, Hologic’s revenues were up 90% from the previous year.

A continued revenue decrease was expected in the second quarter, according to a Hologic press release which accompanied the financial results.

Breast health revenue increased 24.2% in this year’s second quarter, which the release said is due to an improved semiconductor chip supply resulting in higher capital equipment revenue. Surgical revenue also grew, up 23.4%.

Hologic’s total company organic revenue exceeded 20% growth, excluding COVID-19 products.

“Our fiscal second quarter of 2023 once again made clear the strength and durability in each one of our businesses. We are raising our full-year guidance for both revenue and EPS, highlighting our confidence in the remainder of our fiscal year despite an uncertain macro environment,” Karleen Oberton, Hologic’s CFO, said in the press release.

Hologic’s stock price was $90.00 at market close on Monday after the report came out, but fell 3.49% on Tuesday to $84.61 per share on the NASDAQ. The market as a whole was down 1.05% on the S&P 500.