Disruptions to customers from the COVID-19 pandemic are expected to result in weaker-than-expected sales and earnings for women's imaging vendor Hologic in its 2020 fiscal second quarter.
Although the company performed very well throughout most of the quarter, COVID-19 had a significant impact on sales in late March as elective procedures and appointments were deferred and customers focused on responding to the pandemic, said Chairman, President, and CEO Steve MacMillan in a statement.
In preliminary results for the period (end-March 28), Hologic estimates that it produced $756.1 million in overall revenues, down 7.6% -- 7.1% on a constant-currency basis -- compared with the 2019 second quarter. Excluding acquisitions and divestitures, revenue is estimated to have increased 0.5% on a nominal basis and 1.1% on a constant-currency basis, the vendor said.
The firm's breast health business is projected to have produced $307.8 million in the quarter, down 4.3% on a nominal basis and down 3.7% on a constant-currency basis from the $321.5 million reported in the 2019 fiscal second quarter. Sales of its GYN surgical and diagnostics products were also hurt during the period due to the deferral of elective procedures and physician office visits, Hologic said. Consequently, earnings per share will come in below Hologic's prior expectations.
As these factors are expected to continue to have a significant negative impact on future revenue, the company said it is reducing expenses across the organization. However, Hologic said it can't currently quantify the net financial effect of those factors and is therefore withdrawing its financial guidance for the second quarter and the full year.
Full financial results for the second quarter are expected to be released on April 29.
