HOLX - Earnings call transcript Q2 2024

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Operator

Good afternoon, and welcome to the Hologic Second Quarter Fiscal 2024 Earnings Conference Call. My name is Justin, and I am your operator for today's call. Today's conference is being recorded. [Operator Instructions] I would now like to introduce Ryan Simon, Vice President, Investor Relations, to begin the call.

Ryan Simon

Thank you, Justin. you Hologic's thank XXXX Quarter and Call. Earnings afternoon, for Second joining Fiscal Good are the Financial Steve and today Officer. me With MacMillan, Officer; Mitchell, Chief Oberton, Essex Chief company's Karleen our and Chief Officer; our Operating Executive President Chairman,

release quarter now available our press section on Our Investors of is second the website.

will our our a to as also our for an as We replay well XX after this corporate shortly days. on post updated will and be website the next prepared remarks presentation website of call them available we deliver

include would which year; revenue, sales Hologic reconciliation than we less by excluding COVID-XX measures. we acquired products statement filings. discuss which safe in two, discontinued revenue begin, in materially from forward-looking. excludes to release. Before and from those that X differ we measures revenue, owned organic this certain that to statements revenue, involve actual those our referenced included excluding statements and SEC our expressed from harbor organic earnings businesses make are: businesses COVID-XX, we one, and unknown these Also be like earnings release found during will non-GAAP financial Two divested related revenue of will in cause as for non-GAAP to call, inform and A further revenue and assay uncertainties and COVID-XX define can to factors may the certain Diagnostics. you today risks known be GAAP or in we Such results These implied.

in revenue basis on be otherwise noted. will growth discuss year-over-year we changes unless percentage rates be will currency any and constant Finally, a

over to turn MacMillan, the I'd Steve CEO. to like Now call Hologic's

Stephen MacMillan

afternoon, everyone. Ryan, and you, Thank good

financial results We are quarter of the for fiscal to XXXX. discuss second pleased our

$X.XX another came our was quarter. non-GAAP high $X.XX. revenue was Both above total per and in strong of guidance, and For the reflecting EPS earnings share revenue the billion quarter, end

view to proper again is it QX, our important perspective. in QX to Similar performance

we massive throughout call QX on comps and in double-digit faced comps, in shared comps first second. strong our half February, As the very earnings the in XXXX, we still

last Health As Diagnostics growth both Breast grew phenomenal Diagnostics on posted year, XX%. of organic a QX, year And growth QX high year, a COVID XX.X%. at Surgical over in we nearly of of COVID Molecular posted ago, and XX%. top rates growth in reminder, ex of our business, ex the from Molecular This

Breast ago. in a given Health Our SSI surgical excluding year business, result business the our QX solid a business, placements gantry elevated X.X%; divested and X%, the

improving for We of operating sequentially full in also QX to margins XX.X% setting QX, the year. delivered approach nicely up XX% from XXX and fiscal basis us points

we past goals. full the halfway we are achieve in fiscal believe point Now to year position our of excellent an 'XX,

marks to today, stronger, the faster take we in the our COVID on changed moving make system we post-pandemic difference quarter Before that Panther second our care ensure initially fourth bigger, themes as of world. When anniversary testing. world fiscal the and And the had of in with emerge when growing huge world. goals: employees; our a for one, virus two, COVID X a three, our company surged, a COVID

objectives, these future we to did we as internationally, franchises, disciplined our we U.S. only fortress our Not and see you both aiming also strategies today, results, have in and against to forward can we're innovative Fast more. all managed growth. from delivered growth goals, and for executing achieve sheet remain in X facilitate the build balance to of successfully our strengthen a and our primary

still all employee never through we scores challenges. satisfied firmly is the to and our continue high engagement elevate On believe are and That best top of these macro achievements, complicated we already said, ahead.

see we significant we unlock As horizon, look opportunities continue years potential beyond to come. innovate growth to and to out for further the

to X for our on today. themes Now

to of Surgical core and Breast showcase the Health benefits First, our Diagnostics, diverse franchises our continued portfolio.

both As planned, durability we continue to being benefit Diagnostics from because Medtech. and growth robust yield and we

our ability to our we've this turn fortify And announcement empower opportunities and of foundation international drive acquisition. the line quietly continues with to capital and strong Endomagnetics to to growth. our done into business strong top the Second, third, growth week approach capture disciplined demonstrating balance us potential our sheet them reality. as allocation,

which strength line with We bottom us ability top build to to have the flexibility, levers multiple allows significant our and on operational performance. deliver

Turning to our first theme.

of overlooked sum our our from business parts. and the comes misunderstood of strength the Sometimes --

Diagnostics We To how unique growth market meets keep we ahead. the with creates the has strong may and we we In incremental shares service reality, many driving advance have. than multiple product Each unclear with it be our business enduring eye. as forward wins. businesses and more can the drivers diversity with Medtech runway outside, tremendous of collection are a growth drivers growth strength and notch

collectively franchises and deliver growth wins and across these time, multiple multiple meaningful geographies. Over durable

While we neatly do don't either of neatly the health. device, medical into fit or improving we into we world know women's fit diagnostics

Our and more and unique regardless impact set external positively of businesses women more of equips us to deliver macro results challenges.

built Our reflects businesses. of drivers past over years into combination the each strong of multiple growth durable a X intentionally growth our

extended driven Molecular examples highlight consolidated A In a by X.X% on diagnostics over basis ex worldwide What over our business. time. consistently business. create and result net second morph. time is growth we've quarter, The across ability to is growth our again stacked any of and Diagnostics quarter, that in our drivers to few can our cycles. COVID given multiphase and is growth done change The from our beauty here deliver was primarily

pandemic and FDA-approved years, dramatically menu, our X,XXX In expanded we've last over the nearly going Molecular X,XXX during to and over both from Diagnostics, base to from installed the our X doubling assays base installed XX. over few Panthers

menu. more customers At same of is driving our continue more menu geographies. adding time, growth on the focusing volume while phase next largely we Our about and adoption to broaden by existing

of reach as our our a ahead extend commercial to years we we continue growth As and add to create products portfolio. result,

the by adoption the of our quarter. international AI driven diagnostics power on to multi-country our continued of as products of well delivered was diagnostics top extended fusion ongoing BV/CV/TV In underscoring from molecular digital was U.S., of to accretive performance, on cytology psychology are U.S. contributions innovative worldwide the as assays the growth, suite second reach, strong double-digit in the Biotheranostics. the on by Panther, respiratory growth portfolio, growth our quarter, Genius U.S. these Each newer Molecular strong primarily led adoption our from layering also of the Diagnostics growth. Outside of

digital approved ahead. the opportunity in this earlier recently year. was meaning the a cytology U.S. only U.S. reminder, As is still

breast the In we've to service cancer Breast product cover against comps interventional continuum In on digits care, the Meanwhile, year rate. prior the worldwide our imaging including accretive outside U.S, very surgery. second strong from and business well biopsy the a breast worldwide gantry grew double quarter, growth period. our from expanded performed of the businesses Health, emerging basis, in and offering the QX, to

finally, and X.X% the prior In MyoSure, have lines. are with product NovaSure only getting And very we year comp. and of And core growth a X Accesa both Bolder. with the product business U.S. started high just Once internationally, QX, worldwide Fluent, we and now was essentially business strong in new Surgical. against

very QX International business, in double-digit Our strong penetration strategy growth in in market which driven in a continued as reflection large by our Surgical as performance our part the Nordics. is well go-direct was of

All are in, composite. we health a powerful women's

penetrated. and product expect globally, extend grow our we to categories appear their surface in and reach to territories well we mature even may on As that be

that, I'll call With to over the today. final Essex for X to discuss turn our themes

Essex Mitchell

Thank you, Steve.

As discussion identifying previewed opportunities growth and strong with capturing a underpenetrated of execution. diverse drivers, our result is our of by direct durable steady Steve's international growth and market

XXXX. As a than international our it in was XX% over business larger reminder, is

than we still ever and We international in That days opportunities. the are before. more in big said, territory our picture, are more of early direct

Our entering the early where direct; success we of driven markets X going standard approaches: is elevate two, by and care. largely One,

with education and deserve to the remains Tennis a is and Hologic work worldwide potential. realize critically the women's Global health women's is and great our like unfortunately Association our Health Many and health, widely Hologic of Women's world and industrialized, poised mammo gold with This Women's have the to the Hologic. it, in important. developed to women their yet opportunity elevate the Pap accepted the NovaSure case. to on example, women is even and treatment not U.S., care standard considered are and parts XD the around MyoSure are standards. diagnosis as to this opportunity while a elevate for Acceptability this priority the These still partnership For screening, test, XD why and world of access Index those options and latter, even the internationally, procedures ThinPrep of

paces And more we is happen that true even on time the we the surface grow market adoption the holds are believe different overnight, will women's and shows further scratching around in there as with horizon. adoption being other health, over Pacific global still position, we our as large like health. Reinforcing market Asia world at our of ahead Europe, out From for significant the governments only index women's this champions opportunity leading the this perspective, prioritize opportunity, geographies more clearly time, us. to expect not and of adoption

capital of key and have balance both to cash And With M&A in in-house priorities. we flow underscore sheet fund capacity for also cash and the over billion cash and deploy our allocation importance recap our final repurchases. theme to today, and our we'd like share initiatives the strong towards $X strong

the same. capital Regarding remains our strategy allocation,

opportunities sight clear And immediately, have our top bottom if have the accretion on a preference stated and are for better. we sooner, line for We a tuck-in we potential X franchises. to in line, not deal any both on past, the have focused of strong to the core as

than multiple across flexibility are each even as also our in franchises in to Our building We our one aisles of to in teams multiple pipeline. valuations view business we shop greater to to ability potentially their the across maneuver aisles The opportunities versus a strength development reviewing we respective composite and shop into an grow continue as unfavorable today. ability another. are aisle performing creates consistently

technologies -- breast surgery agreement Overall, is and to adding important localization we strategy. announced acquire tracing part an breast provider our business. cancer complements franchises and external Monday, strong a on and million. our breast blend innovative strategy, Endo-Magnetics our portfolio of across LTD Leading our into Endo-Mag's interventional fan developed our approximately of $XXX diversifies innovation growth of expanding products a surgery lymphatic for of in-house

space. exciting potential and and approximately serve our combined believe $XX reach in will the options patients million to for of we global around join growth Endo-Mag revenue, forces, world. XXXX, the accelerate In interventional growth excited amplify this are calendar and We generated better of breadth

and on point, early this a closing definitive year. transaction, though the in the half calendar we we At time are close still line not do of second to have estimate

to are to carry success I let our in QX. turn by Karleen, conclude position QX QX our a of Before we on proud strong that me saying said, call solid build we QX over All and results are performance. our into the

Karleen Oberton

In and income touch statement showcasing Thank our full an good afternoon, the with you, other XXXX. for metrics and of Essex, will few walk guidance statements third everyone. revenue strong our I performance, quarter provide a overview our my results, on key and fiscal financial finish today, down

QX. at second delivered a our midpoint from of X.X%, in top profitability. Total challenging QX a continuation our by year. exceeding our on growth very comp were the As from prior of results revenue and our expectations million. beating highlighted, revenue the of double-digit guidance COVID, came We $XX billion, of on $X.XXX organic was strong. quarter momentum excluding financial

per was which by our non-GAAP In end earnings addition, high share the $X.XX. of exceeded $X.XX, guidance

over to our QX, franchise of the with activities $X.X In and moving from ended million our strength we operating billion to generated in balance want cash nearly sheet. quarter $XXX Before on on continued the the sheet. highlight results, we balance

our execute consistently target us below to generate to cash allocation strong innovation flexibility cash ratio balance well and our flow ability range Our provide capital fund strong strategy. the and leverage

have firepower We as arise. continue deploy opportunities significant to capital to

results. franchise our to second $XXX.X of quarter X.X%. Turning million In Diagnostics, revenue declined

continues Excluding to assay Diagnostics related growing Molecular worldwide significantly, Diagnostics COVID. and revenue, grew XX.X% excluding X.X%. COVID by contribute Within Diagnostics,

U.S. tracking see BV/CV/TV globally. primarily BV/CV/TV, to very growth With outstanding is second continue the we assay market. our its strength revenue as have become international We trajectory. little underlying which continues largest focused on to in

our ASP COVID, expected, solid assay X-Plex lift as was elevated quarter. from from the non-COVID as and plus Additionally, a of RSV year-over-year across our Flu contribution continued flu more season respiratory our sales Growth menu combination B into volume remained A, respiratory second Flu assay.

for Diagnostics, prior Rounding a primarily globally, molecular base and growth business. Biotheranostics well by internationally fueled grew as out strong growth Finally, year X.X% as Psychology double-digit impact perinatal comp. the remains of our from pillar

QX reminder, our impacted a business. long-term set issues a by is above in As growth adversely third-party last logistics to related partner. constraint expectations quarter year the this for supply Level was second

Moving X.X%, quarter when on Total $XXX.X second to Health. excluding of SSI. decreased revenue Breast X% grew but million

As lapping assisted prior 'XX, significant comps. due an true by growth a 'XX. elevated year rate performance for opposite reminder, QX 'XX constraints in prior The QX year to resulted faced QX is supply in where we soft

visibility of an elevated last supply year, QX In as chip number placed gantries semiconductor and we of improved.

highlights driven This growth primarily rates the business our time. in of remainder business And our the across within normalize. our and Essex For growth morph commented Breast gantry interventional Steve was Health, drivers diversity international Within over fact the on. of drivers expect mix. the can that growth by and divisions change year, to we and the growth

next Surgical. Continuing to

Second by quarter the MyoSure revenue increased in system. of be Surgical X.X%. Fluent management $XXX growth fluid related fueled continues million to

be continues lift. year growth headwind lapped VX to as As the to a ASP anticipated, prior we NovaSure NovaSure

our from in Second upgrades. business, Skeletal quarter of capital and XX.X% $XX.X placements declined revenue finally, And million lower

compared Gross lower of second on move non-GAAP the for prior the quarter. primarily and the basis XX.X% sales let's and prior the COVID XXX points with anticipated decline margin of driven by from in year to the expectations. the Now line was The rest period. to year was for quarter P&L

we decreased related This divested chips. decrease a to quarter higher-priced by expenses the work amortization semiconductor margin the primarily of gross of we elimination previously by to expense past was As business. reminder, as $XXX.X million expect operating procured of the improve SSI driven Total X%. second in

XX was points margin The driven operating for was the basis from sales. mentioned, second Steve of lower the COVID year-over-year primarily quarter. As XX.X% decline

a basis operating nearly Sequentially, as a quarter. quarter. QX our from strong our represented first expected, -- in operating income, lower points of income fiscal largely loss from the result other QX, second XXX million in for margins in operating expanded Below net expenses $X

lower repurchases year. the to completed As fiscal share balances lower in interest expected, is income cash significant earlier from due the

Additionally, to interest proceeds interest due swaps. rate our up expense is lower from

Finally, QX XX.XX% our rate in tax was as expected.

and full financial fiscal Now guidance for third the to let's XXXX. on non-GAAP move our year quarter

to million the we to in For and EPS are QX revenue XXXX, expecting $X.XX. total $XXXX.X million. range of $X.XX of $XXX.X

the assumes to year XXXX, guidance $X $X.XX and For revenue of full to $X.XX. billion. our $X.XX billion EPS of

strengthening to respect expect in With recent the significant half U.S. a we to second foreign the year. dollar create the of exchange, headwind of the

are FX For headwind $X million. we about QX, of assuming

prior million year, $X guidance for represents full our about a year. this tailwind of as $XX a $X expect a now to impact tailwind the million -- the about in, prior For All slight reminder, a $XX we million full guidance. a And million. assumed

grow at expect to fiscal excluding the our each impact to XXXX, want least of we X% in reiterate our to COVID. X% franchises. that Turning We to

navigated comps we out have from to with 'XX, challenging still the Diagnostics. close comps most board double-digit strong across we have the 'XX. fiscal fiscal While Starting

Molecular to our drive high continue growth, and utilization expect of as business single-digit our adopt excluding We COVID customers expanded drive to menu. Diagnostics

constraints shipping In the a QX customers cytology minimal sales. year, as we elevated of 'XX, result of in of slightly QX inventory experienced third-party growth however, last in expect built resulting In and QX. perinatal, in

fiscal normalized We cytology expect 'XX. perinatal our to comps business see more and for year in

million $XX on in expect the non-COVID revenue year. full we diagnostics, and approximately blood million $X out Closing of for QX

million to about million and and $XX in about about expected be full million the to expect year. COVID of $XXX full $XX to for in sales are QX million COVID-related items $XX quarter million approximately year. we to terms In $XX be the the $X million 'XX assay COVID revenue, for third

Moving the to remain year. within Breast on pace for X% Health. on to grow the to range X% We business the

straight quarters 'XX with fiscal out rates. XX% closed growth we plus reminder, a X As of

and We sequentially. strong. our and remains of orders. continue in gantry service business for of as back have excellent continues Health half The improve the to expect the visibility into the year in steady demand portfolio products we performance to Breast

more in our year Further, than last confidence delivering gantries remains high.

both for successfully need balance among demand meet resource manage install availability teams continue staffing We customers the to customers, and as screening our constraints. to elevated our and

to Surgical, anticipate in end to our we Accessa come as MyoSure as both high revenue our the growth Finally, target. well fiscal Fluent growth X% long-term full to The continue year will XXXX be Bolder. at and of X% from

and improvement margin next the Moving that assumes margin. fiscal gross our reiterate both throughout to guidance of operating We for 'XX cadence margins.

we QX pace continue through anticipate our margin, to from Health. in sequentially we the XXs. Remain will work Breast gross low year higher QX For exit fiscal the to cost in improve chips as on

margins assumes operating Below in million Our net full estimate year. $XX QX operating we remain of million the be pace 'XX approximately and for and fiscal between QX on guidance 'XX, an income $XX in an low also XXs, fiscal $XX XX%. finish expense to to the other million income, and we expense approaching

the Our million based sets year. are on quarter To diluted an QX be guidance the year. outstanding annual $XXX and second rate strong nicely and us expected for shares another approximately was effective is conclude, the tax full up XX.XX%, for to approximately half of of

With As for to remain and delivering while customers patients. open that, around promises ask operator advancing we questions. employees, always, our we on women's focused on call the to shareholders, our commitments the world health the and

Operator

[Operator Patrick question with Instructions] We'll Donnelly Citi. first our from take

Patrick Donnelly

pretty comps, seeing and just Can are a the look to obviously Again, But pretty key just you environment, talk the the in Diagnostics, what think that about good competitive back just few you're little well. numbers DXP over the out tough up as some put next of market? that to one doing you and continues on a drivers that maybe strength you about franchise obviously bit the assays forward in molecular Steve, spite particularly how there and you few curious of called the durability quarters? the too.

Stephen MacMillan

the to of to It's big know, time and our those worldwide you Patrick, through world's a the a country the what's And years placed reward dividend Panthers, Panthers the to Yes, through end. really when stern those placements. call on needed ton I it. and that And well yes, happen coming rescue doubled as COVID. question next they few the for almost we was, all going and back

And of top it's And I we when what have number feel great what that for you their what on menu put number because results. evident from Panther. keep just and world, added double-digit labor-constrained it's think our the is think customers the start to just on I said the we we XX% been really Panther the I the the footprint years we've tight that a year, last a then -- workhorses getting are really saying just starting incredible and is is Fusion in things are incredible proof seeing that menu And hopefully, on you what sidecar watching, a And in think we're the combined more workflow with more automation, is -- these adoption. about Panthers. we've putting to become

Patrick Donnelly

just announced appreciate it. the on priority? that you I the Can helpful. deal. obviously allocation repo. have maybe remains And the talk you about larger guys the focus You capital then That's just recent side,

side bit of the a large do deal, deal? smaller would a quarter, How how how sheet? terms of on last be here your actively helpful. you Just in that balance And M&A be priorities that dilution. post about thinking think the the think little I

Stephen MacMillan

said, a $XXX products other put in team to to deal, size revenue up would keep can do regular The try one were and real But bit every line let's this little bring do love like million to what phasing additional maybe deals the we we'd this context. know drop Pat, into if in as there. work Endo-Mag day those We we nearly right? and along world, about is perfect those the like Yes, that here then we or that's talking that a quarter. on as doing a be kind world basis. fairly just to of of what buyback a doesn't and linear. some

very buybacks, always a don't cash like up picked jump to during one they in is some good do where point year did we Diagenode, us. do up Biotheranostics, time from Because things Fluent, the can where because we these we pop COVID we'll these number and have that of we're and be amassing a Accesa, it there comfortable been at for when time, might all

So of if been the is what anybody and down change. fairway, would more think we signaling We right deal that'd we've the real find be from Endomagnetics hopefully, us and can exactly no what expect great. those,

I'll Karleen. kick that, With it to

Karleen Oberton

Patrick, strength that to the our and significant Yes. Endo-Mag share well I the allows and as do us ongoing would just repurchase ongoing our flow as things of balance emphasize, flexibility basis. generation an cash sheet regular like on

for and as our look we projections flexibility we of So so lot have financial a to coming over at come strength. years years, the

Operator

And Research. Jack will with our come next Nephron Meehan question from

Jack Meehan

I wanted eagle's questions off-line. take the -- can to

the can For of fits growth business share Endomagnetics. with Essex business are to it your you in for bit existing terms just the there off. rate how of the close wanted Breast broadly, up about pick context was talked in focus time commentary little Is any on of line now, deal expectations just the just the more we valuation to a around maybe I where wondering left like I this the what Health portfolio.

Karleen Oberton

bring force in us our sales for a fits portfolio. think I U.S. in and will of with significant Well, have mix the we'll and think of that differentiator Endo-Mag direct values that with think obviously interventional a that hands. currently I asset that's distributors, be the we that direct our uses And Yes. X it a think I existing is we really nicely

Jack Meehan

growth And share like the rate then can any around comments you're business? expecting you this for

Karleen Oberton

division's would to we growth just accretive certainly rate. would it I to Jack, the expect say, Yes. be

Stephen MacMillan

ahead, Sorry. Justin. I'm sorry, go

Operator

question Savant was going next to Stanley. from Tejas just Morgan say I with sorry. our is I'm Oh,

Unknown Analyst

on annual do This on much of what Breast standpoint, the them, question uplift have call for Health an business? how adoption a And is recent one testing Tejas. the to I physician screening screening update. already If annual a there? then recommends quantitative Yuko would ACS cancer mammal from breast USPSTF your given is does represent from standpoint, that

Stephen MacMillan

Yes.

saw, still really in USPSTF of think Breast kind we biannual capital it's But a business you our we an where really they're and guidelines dependent. the Recall now. see world see As and don't that a a sale a didn't the impact is of much much. Health less really the there volume screening don't changed don't back, either shifted shift guidelines big I downturn way, years and just when "negatively" as see few a

forward We enough. Unless step do for guidelines XX a the haven't a woman far gone where over think they women. still you're are

Unknown Analyst

And to another trial move USPSTF. to That of to And was would be possibility primary helpful. data? what such time Or Got to design trial? test? the on HPV need prospective they run real-world primary line were establish your what optima a existing there then an question it. trial? HPV delay like If would using on claim look a you potential Is a would

Stephen MacMillan

continues the from to facts. years base to be years -- the We the when went a modest uptick in is believe to go. on we're XX almost X That co-testing the scientific absolutely based right seeing ago standard. on States women gold to as and anything, really intervals what the cervical our focused If are started co-testing back the very cancer is X that way in United is in maintaining

Operator

And Vijay our comes with Evercore. next from Kumar question

Unknown Analyst

X% Kevin This is for is tough on on impressive. the of on top comp Congrats quarter, Vijay. last a year

quarter, range, raised, your like guide internal raise and expectations? it your on quarter versus not above performance being given was in tightening the it's guidance? revenue looks this performance organic Just why

Karleen Oberton

on Yes. related midpoint it's guide I look this would the at full slightly. just versus currency, if the actually say is to a constant you the guide up basis, year our of primarily currency impact on guidance prior

indicated hone range within performance So the of range. this we you quarter as a in to really really delivering tighten view the and lot that in

Stephen MacMillan

to too need No ahead of ourselves. get far Great.

Operator

Souda with a take We'll from question Partners. Puneet Leerink

Puneet Souda

could touch I mean the for if in -- that one, Genius U.S. the quarter correct First had cytology a me, I you've for digital so. system. or Steve market on

Just, you And the terms on within of are playing in sort in the a field? of terms you overall early of hearing the provide U.S.? do are what the international of of this system? hearing you the anything out adoption similarly pushback can from And you throughput folks in the feedback expect the sort of

Karleen Oberton

Yes.

point. Let I me into we're Yes, our with successful U.S., recently the in was and that workflow of the and workflow, that's on off implementing just customers it really lab that. this the say really kick into so would partnering lab a on what integrating focused more approved at in we're integration

in what talked a So of feedback minimal this But do the will lot we've 'XX there's a excitement contribution about in And be really think of well what in from approval. U.S. can we labor-constrained I those think the environment. here, early received. days,

Puneet Souda

just have sort product. don't the the but the they another and of XX% side, the growth know competitive they their side, different women's out how and for wondering positioning in a you testing A] point-of-care pointed the reference Got look in larger still in overall that peers it. lab seeing there's sort health I of -- share that's landscape, maybe mean larger [Strep broader RSV you're question but is for Steve. their And the market, when at I of the seeing who's one shift. market peer also Steve, in We're in

forward? be for of strongest the understand continue be opportunities the the where going to continues set share trying the of will to strongest -- opportunity most be and to just So the sort Hologic think will where sort you

Stephen MacMillan

don't for the on just share funny It's and as Yes. building in as business always many so customers our probably do our we focus much we ways, on growing categories.

to great more know, point menu not in respiratory Fusion continue business. think the We've respiratory is business. had. we've than I of about feel we're We're you ever building as got, care competing what the So we so we've a got sidecars,

the systems, public in We our the labs delivering customers. really are on for very health focused reference just and strong in hospital those labs

as, of And we've workflow an economic specificity as and sensitivity advantage we of our frankly, well both got assays. the lot believe a

feel up growth shared end And rates the will the companies good there. be, to markets, think, and continue several So I will and in the donors at that day, equation. be there about very of are the big others going these

Operator

on moving with Casey Woodring JPMorgan. to And

Casey Woodring

Great.

and strong the So looking an curious guidance guys LRP line and your given even that just COVID at above how top potentially we different the and range think on after growth the the fiscal Diagnostics here of day higher the Surgical. or selling the should range How end fiscal 'XX the above are far? now moving LRP quarter, I'm the basis range? ex outperformance through ex parts if particularly you fall about halfway on there so we're on thinking about year, the in could

Stephen MacMillan

Yes, guidance 'XX Casey, near point in anywhere you'll at love it. We're time. not this going

investing the So into tuned November But and we've we're future. that. given get for you. But for we'll now, for the call, thank long range delivering stay the

Casey Woodring

seen that any really then international just I do here. you the BV/CV/TV, for opportunity in you if in the follow How strong growth hasn't included up All the international could assay contribution. you've maybe right. that prepared And assess mentioned

phasing frame much how on us help based piece. international that in have runway assay on growth just you the maybe So

Stephen MacMillan

at some other Yes. frankly, indication looking not the We're things is the are necessarily markets and There there. on earlier the stages really developed. of opportunity

market a longer-term been. us have a as opportunity of development for our frankly, more products probably of it's internationally little many So

we the the I near expectations would love tell United have, So in term the very minimal internationally. momentum on though you States it. certainly we in

Operator

Andrew from question William Brackmann a Blair. have we And with

Andrew Brackmann

some in international the distributors. for And guess us to on how distributors, levers and much in just of And expansion I of a that business exist in follow-up we that you related is go as has the namely talk to control? been general? can segment of which in your about margin a if of international years, back sort future particular, successful logic handful there drive pretty acquiring here, maybe Maybe margins,

So I opportunity? of into sort guess, expansion how does that play margin that

Karleen Oberton

we that have access better we in and we one in find as is strategies over years. -- capabilities, that to markets market go have margins as Certainly, the the with X direct something Yes. improve outcomes is that we which development market direct, of invested our we those last go and

surgical strength is point we days, to that grow at as portfolio, that the product that as specifically the move margin profile to overall So as leverage business. it's the we certainly, -- investment for continue the of surgical but accretive portfolio early well commercial forward an

So there'll we think I forward. drivers multiple move be as

Operator

will our Raymond come Cooper question James. from And with next Andrew

Andrew Cooper

region that of to international. table of have just the outsized at One been Maybe first all really release. at the with just other. jumps thing has the seems The looking sticking kind growth most bottom the out,

May think product particular that I if particular a 'XX. What as region region in terms sit in opportunity of expansion most the a particular be think then maybe or a you it's the maybe you in in And areas there? of excited geographic start are part general? about of but here highlight international thoughts we as any that might about unwinding little can bit, COVID just a opportunity, you

Stephen MacMillan

Yes.

no of different of interventional we've products market access series it. and kind capabilities got different of I momentum. the space. surgical really building there's of a And just We've building in that been a geographies lot individual -- magic them in And driving years. that's products international business the think a are of and everything that lot is one individual the over and kind it's of countries our while

own did getting Nordics. our sales we've forces and Certainly, we're mention excited distributor its internationally, plus both been very in opportunity acquired business our with we about our the what Surgical we doing

-- feel So then going approved, internationally, cytology very in that's well we get different digital just well The you go there. got -- Western continuing fact Europe. very been it's times. our And to

on and different it's profit not and been the different collection We've this to sales internationally, said always geographies making going past, over X I be think forces businesses growth. up franchises, along. of dramatically just building is, the magic So the by showing the going years in these And year we're Andrew, all to off the from day we're hey, take building investments expand the time. saying, a we our

as next keep launch countries, use funding then building. fund then we And certain year the to products certain in and that

of this really inexorable it's building success. So just

Operator

Petrone come Mizuho with question Securities. next from Our Andrew

Unknown Analyst

make cover should Breast think that one why strategic the procedural business. other on obviously, Breast you -- is kind in Anthony. the Health -- acquisition, any of move get bigger see you'd business for The your talk Endomag swap have attention. continuum, the core kind This and to if Davis guys expect in on which competency that whenever I not Health, and now another on the -- there's like a Andrew, side moves assets of as that Brad you're if to but hear you of to see further at of portfolio? kind the time figure we paying on we to you the a rationale

Stephen MacMillan

Yes.

breast biggest gantry build a doing X of piece out think what across business been continuation to where the the and we've just care continuum. years over we've it's tried the last the especially X, is I build,

So into techniques. interventional and biopsies into

an pick we've this been we've We've continuing as our few They've really to finally area doing. timing time to years by driven the one So we into and Endomag. quite lot, is the this the And yes, doing back. what has Thank you. tracking both a been We localizer business, them. that available been got been we've for building became business some But opportunity a markers on looking. own opportunity on been organic, a we've been just liked inorganic. grab up been

Unknown Analyst

to of launch boxes And called frame. breast then the some just life recently cycle stay helpful. That's it. on XXXX the business, in the you out Got time

plans systems and So life this on how opportunity I new us, software the the Hologic rationale span maybe frame. any upgrade you remind of if of kind monetize getting part devices to is these also product of replacement best the guess, the on and XX-year Can timing to X-, enhancements. time just and

Karleen Oberton

life as system software Yes. had don't out over other have -- about, that be But in and but we've bust upgrades all said in we've past we smooth very that away say and And upgrades been cycle. really of many I replacement business several from the years, replacement into of move cycle talked we've would a the gantry boom for intentional 'XX. really to They base. which compatible that, gantry. that have certainly probably installed to been to the development, along customers improvements later, wait having get to gen next able about we'll way. have have talking that's The been something what backwards the and

Operator

Absolutely. Ryskin] come That from [Michael with of will Bank question America.

Unknown Analyst

on Mike. John is came This for

utilization I think contributor. these improved to talked I the main be and before, wondering we've was about the seems numbers

for average trending, more wondering what assay versus than using Panther been the was assay assays. customers I has of percentage the of X how used like than one number So is more

Karleen Oberton

Yes.

end into less say XX% So if we about more we assays were than about X of maybe approaching running I XXXX, that that think XX%, But that's our placed the was probably that the or But go to back entire customers think to base. of of point would 'XX, other April the were since that I think XXXX. XX%. is Panthers newer high I to metric -- I'd the installed at look

and least at one assay over customers are X acquired running new the XX% pandemic other customers since assays. running least XX% those of of at So other over

the Panther ahead with menu continue all So that see in the the base. long utilization points the the value, installed workflow to the our to runway and drive I on that instrument to think customers

Operator

concludes Conference a good Call. now Earnings this And XXXX Have evening. Quarter Hologic's First Fiscal

Hologic (HOLX) 2 May 242024 Q2 Earnings call transcript