Hologic, Inc. (HOLX) has reported an 1.88 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $86.50 million, or $0.30 a share in the quarter, compared with $84.90 million, or $0.29 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $148.10 million, or $0.52 a share compared with $135.10 million or $0.46 a share, a year ago.
Revenue during the quarter grew 5.64 percent to $734.40 million from $695.20 million in the previous year period. Gross margin for the quarter expanded 59 basis points over the previous year period to 55.12 percent. Total expenses were 80.12 percent of quarterly revenues, down from 81.86 percent for the same period last year. This has led to an improvement of 174 basis points in operating margin to 19.88 percent.
Operating income for the quarter was $146 million, compared with $126.10 million in the previous year period.
However, the adjusted operating income for the quarter stood at $247.60 million compared to $232 million in the prior year period. At the same time, adjusted operating margin improved 34 basis points in the quarter to 33.71 percent from 33.37 percent in the last year period.
"We are pleased with our first quarter financial results," said Steve MacMillan, Hologic's Chairman, President and Chief Executive Officer. "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."
For financial year 2017, Hologic expects revenue to be in the range of $2,785 million to $2,825 million and expects adjusted revenue to be in the range of $2,785 million to $2,825 million. The company projects diluted earnings per share to be in the range of $2.73 to $2.77 and projects diluted earnings per share to be in the range of $1.90 to $1.94 on adjusted basis.
For the second-quarter, Hologic expects revenue to be in the range of $675 million to $685 million and expects adjusted revenue to be in the range of $675 million to $685 million. The company projects diluted earnings per share to be in the range of $1.85 to $1.86. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.45 to $0.46.
Operating cash flow falls marginally
Hologic, Inc. has generated cash of $169.60 million from operating activities during the quarter, down 1.05 percent or $ 1.80 million, when compared with the last year period.
The company has spent $25.20 million cash to meet investing activities during the quarter as against cash inflow of $12.30 million in the last year period.
The company has spent $40.40 million cash to carry out financing activities during the quarter as against cash outgo of $22.70 million in the last year period.
Cash and cash equivalents stood at $646 million as on Dec. 31, 2016, down 0.66 percent or $4.30 million from $650.30 million on Dec. 26, 2015.
Working capital increases sharply
Hologic, Inc. has recorded an increase in the working capital over the last year. It stood at $1,047.40 million as at Dec. 31, 2016, up 121.77 percent or $575.10 million from $472.30 million on Dec. 26, 2015. Current ratio was at 1.81 as on Dec. 31, 2016, up from 1.52 on Dec. 26, 2015.
Days sales outstanding went up to 56 days for the quarter compared with 54 days for the same period last year.
Days inventory outstanding has decreased to 38 days for the quarter compared with 82 days for the previous year period.
Debt comes down
Hologic, Inc. has recorded a decline in total debt over the last one year. It stood at $3,322.90 million as on Dec. 31, 2016, down 8.52 percent or $309.50 million from $3,632.40 million on Dec. 26, 2015. Total debt was 45.28 percent of total assets as on Dec. 31, 2016, compared with 47.30 percent on Dec. 26, 2015. Debt to equity ratio was at 1.49 as on Dec. 31, 2016, down from 1.68 as on Dec. 26, 2015. Interest coverage ratio improved to 3.61 for the quarter from 3.22 for the same period last year.
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