Hologic, Inc. (HOLX.OB), a diversified medical technologies company specializing in diagnostics, imaging systems and interventional devices dedicated to serving the healthcare needs of women, recently reported the company’s second quarter earnings.
The company reported second quarter revenue of $431 million, a 138% year-over-year increase when compared to revenues of $181.1 million in the second quarter of 2007. The dramatic increase, however, is mostly due to the inclusion of approximately $189.2 million of revenues from the merger with Cytyc Corporation on October 22, 2007.
For the second quarter of 2008, Hologic reported net income of $56 million, or $0.22 per diluted share, up from net income of $21.6 million, or $0.20 per diluted share, in the second quarter of 2007. Again, these figures include charges relating to the Cytyc merger of $25.1 million attributable to the amortization of intangibles and $0.8 million attributable to the increase in cost of revenues.
Despite the growth, even when taking into account the net earning minus the acquisition, the numbers stilled missed analyst expectations. Estimates called for earnings of $0.28 per share on $417.88 million in revenue – nearly 21% off the mark. Shares plunged more than 18% on the earnings news; however, several analysts are standing by the company. Both Jefferies and Citigroup noted that the sell off was overdone and reiterated their Buy ratings for Hologic.
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