The paragraph details the introduction of Hologic's Fourth Quarter Fiscal 2024 Earnings Conference Call. The operator, Shelly, initiates the call, followed by Ryan Simon, Vice President of Investor Relations, who introduces key executives including Steve MacMillan, Essex Mitchell, and Karleen Oberton. The fourth-quarter press release is accessible on Hologic's website, with prepared remarks soon to follow. The call will include forward-looking statements, which involve risks that could lead to different actual results, as per the safe harbor statement and SEC filings. Non-GAAP financial measures will be discussed, with specific focus on organic revenue and organic revenue excluding COVID-19 impacts. Percentage changes will be discussed on a year-over-year basis, with revenue growth rates expressed in constant currency.

In the second paragraph of the article, Hologic's CEO, Steve McMillan, discusses the company's financial performance for the fourth quarter and the full fiscal year of 2024. The company reported fourth-quarter revenue of $987.9 million and non-GAAP earnings per share of $1.01, with annual revenue reaching $4.03 billion and non-GAAP EPS of $4.08. The results exceeded guidance expectations, highlighting the company's consistent growth and profitability. The CEO emphasizes the firm's progress in strengthening and expanding its business by leveraging strong brands, focusing on workflow automation, and effective M&A strategy, especially in women's health. The paragraph notes significant growth in the Molecular Diagnostics segment, particularly excluding COVID-related products, and maintains leadership in breast imaging despite challenges like the global semiconductor shortage.

The paragraph highlights Hologic's strong financial performance and strategic initiatives. The company maintained a 30% operating margin, remaining profitable compared to peers, and sees potential for further improvement by 2025. Hologic has been strategic in its M&A activities, recently acquiring Endomagnetics and signing an agreement to acquire Gynesonics, to enhance its portfolio. The company is committed to benefiting women with innovative products from these acquisitions. In 2024, Hologic plans to fund key initiatives, reduce share count, and launch a $250 million accelerated share repurchase program to deliver shareholder value. The two themes for the call focus on Hologic's identity, achievements, future direction, and its consistent performance over the past decade, despite market challenges, since a transformation began in 2013.

The paragraph discusses the strategic evolution and achievements of a healthcare organization. Initially, the company strengthened its leadership in diagnostics, breast health, and surgical franchises. During the COVID pandemic, it expanded growth through organic means and acquisitions. The company developed market-leading platforms and product lines like Panther, Horizon DXA, and 3D mammography, driving growth by creating new markets. Future growth is expected to be fueled by innovative products leveraging existing businesses. With a strong organizational culture focused on continuous innovation, the company is optimistic about its growth prospects and product pipeline for fiscal 2025.

The paragraph discusses the current state and future direction of Hologic, emphasizing its role as a market leader and partner to customers by integrating workflow automation into its solutions. The company aims to drive sustainable growth through its expansive product portfolio and strong balance sheet, enabling both organic and inorganic expansion. It highlights the strong revenue performance in the Diagnostics division, particularly in Molecular Diagnostics, which saw significant growth driven by the BV/CV/TV assays and biotheranostics business. The division's 4-plex COVID, Flu A, B, RSV assays also contributed to quarterly growth, maintaining an upward trend in market expansion and efficiency improvement.

The paragraph highlights Hologic's growth initiatives and performance in various business sectors. The company is experiencing growth in its biotheranostics segment through expanded adoption of the breast cancer index test and is increasing the global presence of its Panther Fusion system for molecular diagnostics. In cytology and perinatal diagnostics, Hologic achieved 0.7% growth in the fourth quarter, aided by positive feedback on their FDA-approved Genius Digital Diagnostic System. In the Breast Health sector, fourth-quarter revenue increased by 6.2%, driven by breast imaging services and interventional products. Surgical segment revenue grew by 5.4%, led by the MyoSure platform and its fluent fluid management system, which offset declines in the legacy NovaSure business.

The paragraph discusses the company's strong international surgical business performance and temporary revenue decline in its Scalable business due to a halt in Horizon DXA shipments, which is expected to resume soon. The international segment has grown nearly 50% since 2019, with significant untapped potential for expansion into new and existing markets. The company is well-positioned to capture growth opportunities in emerging markets, contributing to long-term growth. Additionally, the company's M&A strategy focuses on acquiring assets that complement its existing strengths, drive growth, and enhance earnings, particularly through tuck-in deals within its core or adjacent market segments.

The paragraph outlines the company's strategic focus on mergers and acquisitions (M&A) to target high-growth areas and strengthen market leadership, aiming for global durable growth. Karleen Oberton discusses the company's strong financial performance in the fourth quarter and the full fiscal year 2024, highlighting revenue growth, particularly excluding COVID-related impacts, and an increase in non-GAAP earnings per share. Despite challenges, such as revenue headwinds from a specific product issue, the company achieved overall revenue growth and maintained a strong balance sheet, staying committed to its capital allocation strategy. Looking ahead, the company provides fiscal 2025 guidance for continued growth.

In fiscal 2024, the company executed its capital allocation strategy by acquiring Endomagnetics and repurchasing 11.2 million shares for $808 million, reducing the diluted share count by over 10 million. They plan to continue share repurchases in 2025 with a new $250 million ASR, backed by strong operating cash flow and $2.4 million in cash and investments. A definitive agreement to acquire Gynesonics has been signed, with closure expected in the first half of 2025. In Q4, the gross margin improved to 61.5%, driven by domestic revenue growth, despite facing challenges like high-cost semiconductor inventory. Operating expenses increased by 2.4% due to the inclusion of Endomagnetics and stronger international currencies.

In the fourth quarter, the company's operating expenses remained stable year-over-year, and operating margins increased to 30%, with a net margin of 24%. Despite a loss of less than $1 million from other income, tax rates were as expected at 19.75%. Looking ahead to fiscal 2025, the company anticipates Q1 revenue of $1.025 billion to $1.035 billion and EPS of $1 to $1.03. For the full year 2025, expected revenue is between $4.15 billion and $4.20 billion, with EPS of $4.25 to $4.35. A foreign exchange tailwind is predicted to slightly boost revenue, with overall organic growth forecasted at 4% for the year. Initial revenue growth might face challenges from industry-specific factors, but improvement is expected as the year progresses. For core diagnostics, mid-single-digit growth is projected, supported by key product adoptions.

The paragraph discusses the company's recent achievements and expectations across various business areas. They successfully launched a digital cytology product in the U.S. and plan for conservative growth in COVID and respiratory assays while maintaining capacity for demand surges. In fiscal 2024, COVID revenue shifted to their 4-Plex respiratory assay, and they anticipate this transition to influence fiscal 2025. COVID assay and related item sales are expected to contribute significantly to revenues. They also project specific revenue from blood screening and discuss Breast Health, expecting normalized growth after the chip shortage recovery and planning for a next-generation gantry launch. For their Interventional Breast segment, strong performance is expected despite the withdrawal of BioZorb products. In their surgical division, they anticipate offsetting declines in NovaSure domestically with broad international growth, aided by improved market access and penetration. The paragraph concludes by transitioning to a discussion on margins.

The paragraph discusses Hologic's fiscal '25 financial guidance, highlighting expectations for both gross and operating margin expansion due to strong operational discipline. Q1 gross margins are anticipated to be around 60%, with improvements during the year. Operating margins are expected to start at 30% in Q1, increasing by 50 to 100 basis points by year-end. The highest operating expense is anticipated in Q1 due to seasonal factors, with a modest increase expected for the rest of the year as the Endomagnetics business is integrated. Other income net expenses are estimated at $10-$15 million for Q1 and $50-$60 million for the year, based on a 19.5% tax rate and 235 million diluted shares outstanding. The paragraph concludes with a positive outlook on women's health initiatives and the upcoming fiscal year, followed by an invitation for questions, starting with Patrick Donnelly from Citi focusing on margin expectations.

In the article paragraph, Patrick Donnelly and Karleen Oberton discuss the fiscal outlook, particularly for fiscal year 2025. Oberton mentions that the company is facing transitory headwinds in the first half of the year, such as the IV fluids shortage affecting their surgical business. However, they anticipate overcoming these challenges as the year progresses. The company is also working on network optimization opportunities that should yield benefits by the end of the fiscal year. The full-year revenue guidance suggests accelerated growth in the latter part of the year, contributing to margin expansion. Patrick then shifts the conversation to Steve MacMillan, who provides an outlook on the Breast Health business, highlighting a new product launch related to the gantry, which will likely see revenue impacts in 2026 through 2028.

The paragraph is part of an earnings call dialogue, discussing the company's performance and expectations. It mentions that the past year might show slower growth in gantries due to being a year before a product launch. However, the company's service and interventional business, including products like Endomag, are performing well. Karleen Oberton notes that while sales from diagnostic assays like BV/CV/TV are expected to continue with strong double-digit growth, it's projected to be slightly less in the following years due to a larger base. Biotheranostics, another focus area, is closer to $100 million in revenue and is also anticipated to achieve solid double-digit growth through 2025. There is also a reference to a transition in the respiratory panel and an expectation of a decline, although specific sales numbers were not provided.

The paragraph discusses a financial transition from COVID-related revenue to a new product, with a focus on the Plex assay, which cost tens of millions of dollars. The speaker doesn't anticipate another transition year soon, indicating some challenges for the first half of 2025. The discussion then shifts to Anthony Petrone from Mizuho Group asking about the installation of breast health equipment and the recent acquisition of Gynesonics. Stephen MacMillan mentions that the upgrade of 3D Tomosynthesis systems from 2014-2017 will be gradual rather than immediate. Essex Mitchell notes that details on the Gynesonics installed base will not be available until after the acquisition is finalized, but states the Sonata system aligns well with existing surgical portfolios and customer needs.

In the paragraph, Vijay Kumar from Evercore ISI asks the operators about the guidance and potential headwinds for fiscal '25, particularly concerning skeletal and other issues. Karleen Oberton explains that there are "transitory headwinds" anticipated in Q1 and potentially spilling into Q2, including delays in shipping skeletal products, cautious expectations for respiratory products due to flu seasonality, and IV fluid shortages caused by hurricanes, affecting the surgical and breast businesses. These factors contribute to a lower growth rate in Q1 and suggest accelerated revenue growth in the latter half of the year. Stephen MacMillan adds that while not all companies have highlighted the IV fluid shortage, they tend to notice issues early due to their closeness to the business, citing past instances like the chip shortage.

The paragraph is a dialogue involving Karleen Oberton and an unidentified analyst during a conference call, discussing the impact of transitory headwinds on Baxter's business related to emergency and non-elective procedures at hospitals. Karleen mentions that several other med tech companies are experiencing similar issues, but they haven't quantified these impacts specifically. She suggests the skeletal stop ship might lead to roughly $5 million a month in losses, with respiratory impacts estimated to be between $10 million to $20 million. Regarding a $250 million share repurchase, Karleen indicates that it will begin soon and is expected to be completed within their fiscal second quarter, contributing to fiscal year 2025.

In the conversation, Casey Woodring inquires about the growth expectations for different business segments, and their international versus domestic sales outlook for 2025. Karleen Oberton mentions that they haven't provided specific details but notes mid-single-digit growth for diagnostics in Q1, with other businesses projected to grow less. Essex Mitchell expects international growth to surpass domestic growth. Regarding a 19.5% tax rate for 2025, Karleen indicates it's a reduction compared to fiscal 2024 due to limitations on foreign losses and supply chain strategies, with no commitments to lowering it further. Mike Matson from Needham & Company raises a question about the U.S. decline in NovaSure, seeking insights into its future prospects.

The paragraph is a conversation during an investor call or interview, primarily discussing Hologic's position in the market for endometrial operations and fibroid treatment technologies. Essex Mitchell indicates that despite a slow decline in the volumes of global endometrial operations, alternatives like IUDs are becoming more prevalent, but Hologic expects to maintain its market share. The focus then shifts to the acquisition of Gynesonics, which is seen as complementary rather than competitive to Hologic's MyoSure, as it targets different types of fibroids using different technology. There's a mention of M&A activities, with Karleen Oberton touching on Hologic's capital allocation priorities across its divisions.

In the paragraph, the speaker discusses Hologic's business strategy, emphasizing that each division has its own business development team focused on acquiring assets and cultivating relationships. They mention balancing mergers and acquisitions (M&A) with share repurchases as part of their strategy for 2025. The conversation shifts to answering a question from an analyst about the Panther system placements, mentioning that there are over 3,300 Panthers installed globally, significantly more than pre-pandemic. Although the pace of new Panther placements has slowed, the molecular diagnostics business continues to grow, excluding COVID-related impacts, achieving a 9% increase in fiscal 2024.

The paragraph is a portion of a financial discussion involving Stephen MacMillan and Karleen Oberton, addressing aspects of their business model and operations. MacMillan highlights that their revenue primarily comes from assays rather than Panthers and explains the benefits of their reagent rental model, which reduces capital expenditure needs. An unidentified analyst inquires about multiple-assay usage statistics and facility integrations in the Breast Health business. Oberton notes that there is positive progress in assay trends and outlines that facility integrations will be completed within the year, which will enhance synergies in R&D. Additionally, she mentions that they are nearing the end of the high cost of chips phase, indicating a move towards normalized levels by 2025, with some lingering margin impacts earlier in the year.

The paragraph discusses several topics related to the business's financial projections and product issues. It indicates that multiple ships were affected by a particular issue and expects resolution by 2025. A question from Morgan Stanley's Tejas Savant, via analyst Jason, inquires about potential financial recovery in skeletal health and the impact of removing BioZorb. Karleen Oberton replies that the impact of BioZorb's removal is minimal and emphasizes a focus on meeting customer demand for skeletal health products. Another question from RBC Capital Markets' Ricardo Moreno explores the relationship between the chip shortage and the gantry business's growth and equipment cycles. Oberton explains that they expect normalized growth rates in 2025, despite minor headwinds from next-generation gantry development.

The paragraph discusses the company's expectations for a steady replacement cycle in the U.S. due to recent technology and software improvements. This approach avoids creating pent-up demand by ensuring upgrades are compatible with existing systems. Ricardo Moreno highlights concerns regarding international business margins, traditionally lower than 30%, impacting the goal of a 31.5% operating margin post-pandemic. Karleen Oberton reassures that they aim for a 30% margin in fiscal 2025, with expected improvements, acknowledging that international growth presents opportunities despite being typically margin-dilutive. The conversation shifts to Biotheranostics, where the focus is on sustaining double-digit growth into fiscal 2025 and exploring future growth opportunities.

The paragraph is from a company's earnings conference call, where Stephen MacMillan expresses optimism about future opportunities, noting that market penetration is still low and it's early days for growth. Andrew Cooper asks about margin improvements, and Karleen Oberton responds by saying that various temporary factors are currently affecting margins, but they expect margins to improve as these issues are resolved by the fiscal fourth quarter. The call concludes, and participants are thanked.

This summary was generated with AI and may contain some inaccuracies.