Hologic, Inc. (HOLX) has reported a 664.59 percent jump in profit for the quarter ended Apr. 01, 2017. The company has earned $526.80 million, or $1.84 a share in the quarter, compared with $68.90 million, or $0.24 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $142.70 million, or $0.50 a share compared with $135.70 million or $0.47 a share, a year ago.
Revenue during the quarter grew 3.19 percent to $715.40 million from $693.30 million in the previous year period. Gross margin for the quarter contracted 120 basis points over the previous year period to 54.33 percent. Total expenses were 39.75 percent of quarterly revenues, down from 80.37 percent for the same period last year.
Operating income for the quarter was $999.80 million, compared with $136.10 million in the previous year period.
However, the adjusted operating income for the quarter was almost stable at $234.10 million when compared with the prior year period. At the same time, adjusted operating margin contracted 119 basis points in the quarter to 32.72 percent from 33.91 percent in the last year period.
"Hologic posted good financial results in the second quarter, with both revenues and EPS exceeding our guidance," said Steve MacMillan, Hologic's chairman, president and chief executive officer. "Our base business revenue grew 5.4% on a constant currency basis, led by our molecular diagnostics, surgical and international franchises. And at the same time, it was a transformational quarter from a strategic perspective, as we strengthened our portfolio of businesses for the long-term."
For the third-quarter 2017, Hologic, Inc. forecasts revenue to be in the range of $790 million to $805 million. The company forecasts adjusted revenue to be in the range of $790 million to $805 million. The company expects diluted earnings per share to be in the range of $0.22 to $0.24. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.48 to $0.50.
For fiscal year 2017, Hologic, Inc. forecasts revenue to be in the range of $3,050 million to $3,080. The company forecasts adjusted revenue to be in the range of $3,050 million to $3,080 million. The company expects diluted earnings per share to be in the range of $2.44 to $2.48. The company expects diluted earnings per share to be in the range of $1.98 to $2.02 on adjusted basis.
Operating cash flow declines
Hologic, Inc. has generated cash of $253.40 million from operating activities during the first half, down 21.38 percent or $68.90 million, when compared with the last year period.
Cash flow from investing activities was $423.80 million for the first half as against cash outgo of $14.50 million in the last year period.
The company has spent $85.50 million cash to carry out financing activities during the first six months as against cash outgo of $481.50 million in the last year period.
Cash and cash equivalents stood at $1,134.60 million as on Apr. 01, 2017, up 258.71 percent or $818.30 million from $316.30 million on Mar. 26, 2016.
Working capital turns negative
Working capital of Hologic, Inc. has turned negative to $323.60 million on Apr. 01, 2017 from positive $251.60 million on Mar. 26, 2016. Current ratio was at 0.86 as on Apr. 01, 2017, down from 1.30 on Mar. 26, 2016.
Days sales outstanding were almost stable at 55 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 53 days for the quarter compared with 84 days for the previous year period.
Debt comes down marginally
Hologic, Inc. has recorded a decline in total debt over the last one year. It stood at $3,283.20 million as on Apr. 01, 2017, down 3.60 percent or $122.50 million from $3,405.70 million on Mar. 26, 2016. Total debt was 37.71 percent of total assets as on Apr. 01, 2017, compared with 46.74 percent on Mar. 26, 2016. Debt to equity ratio was at 1.17 as on Apr. 01, 2017, down from 1.67 as on Mar. 26, 2016. Interest coverage ratio improved to 26.66 for the quarter from 3.48 for the same period last year.
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