Hologic beats estimates, hints at small divestments
(Reuters) - Medical device maker Hologic Inc (HOLX.O) reported a better-than-expected adjusted quarterly profit as it sold more 3D systems that help detect breast cancer, and its CEO said he would pursue the strategic review started by his predecessor.
Hologic shares rose 4 percent in extended trading.
"Our expectation at this time is that there will be no major changes to our corporate structure, though we may pursue some select smaller divestitures," said Stephen MacMillan on a conference call.
ISI Group analyst Vijay Kumar said Hologic would likely sell its blood screening business and that Spanish pharmaceutical company Grifols could be a buyer.
Grifols was a customer of Hologic's collaboration with Novartis AG (NOVN.VX) on blood screening tests.
MacMillan, the former Stryker Corp (SYK.N) head who became Hologic CEO in December as part of a settlement with activist investor Carl Icahn, said he was building on the strategic review started by former CEO Jack Cumming.
MacMillan plans to expand Hologic's international business, which accounted for only a quarter of sales and said the company would focus on stopping the decline in sales in key products and focus on generating growth in 2015.
Hologic has been struggling with lower spending by hospitals, slower growth in the use of its 3D mammography systems due to a lack of reimbursement and falling sales of its cancer detection test.
Hologic said revenue from its breast health business rose about 3 percent to $226.5 million in the first quarter.
Hologic posted a net loss of $5.4 million, or 2 cents per share, for the quarter ended December 28, compared with a net income of $3.1 million, or 1 cent per share, a year earlier.
Excluding items, Hologic earned 34 cents per share, ahead of analysts' average estimate of 31 cents per share, according to Thomson Reuters I/B/E/S.
Revenue fell 3 percent to $612.4 million, but beat analysts' average estimate of $609.7 million.
The company raised the lower end of its earnings forecast by 2 cents for the year ending September. The company said it expects adjusted earnings of $1.34-$1.38 per share.
The company's shares closed down 4 percent at $20.47 on the Nasdaq on Monday.
(Reporting By Vrinda Manocha in Bangalore; Editing by Sriraj Kalluvila and Don Sebastian)