Growth in its breast health business contributed to revenues that exceeded expectations for women's imaging firm Hologic in its first quarter of fiscal 2018.
For the period (end-December 30), Hologic had $791.1 million in revenue, up 6.7% on a constant currency basis from the $734.4 million reported in the first quarter of fiscal 2017. Excluding its acquired medical aesthetics and divested blood screening businesses, revenues would have increased 1.5% on a constant currency basis. Hologic noted that revenue growth rates were affected by having four fewer selling days in the quarter, compared with the same period a year ago. The company estimated that the extra selling days added more than $20 million to its first-quarter revenues in 2017.
Hologic's breast health segment produced $288 million in revenues, up 4.2% on a constant currency basis from the $273.3 million reported in the first quarter of 2017. The increase was driven by strong international sales, new products, and service revenue, according to the vendor. Chairman, President, and CEO Steve MacMillan said that strength in Hologic's breast health, molecular diagnostics, and international businesses drove the company to achieve quarterly revenues just above its guidance range.
Due to U.S. tax changes, the company's quarterly net income surged to reach $406.7 million, up from $86.5 million a year ago. Hologic said it performed preliminary calculations on the tax reform and recorded a discrete net tax benefit of $329.2 million.
Looking ahead, Hologic reiterated its full-year revenue guidance and raised its earnings-per-share guidance based on its first-quarter results and the beneficial effects of the tax reform.
