Hologic Inc. (NASDAQ:HOLX) Q4 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 04:30 pm ET

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Hologic Inc. (NASDAQ:HOLX) Q4 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon and welcome to Hologic's Fourth Quarter Fiscal 2019 Earnings Conference Call. My name is Cody and I am your operator for today's call. [Operator Instructions]

I would now like to introduce Mike Watts Vice President Investor Relations and Corporate Communications to begin the call.

Executive
Michael J. Watts

Thank you Cody. Good afternoon and thanks for joining us for Hologic's Fourth Quarter Fiscal 2019 Earnings Call. With me today are Steve MacMillan the company's Chairman President and Chief Executive Officer; and Karleen Oberton our Chief Financial Officer. Steve and Karleen both have some prepared remarks today then we'll have a question-and-answer session. Our fourth quarter press release is available now on the Investors section of our website. We also will post our prepared remarks to our website shortly after we deliver them. Finally a replay of this call will be archived through November 29. Before we begin I'd like to inform you that certain statements we make during this call will be forward-looking. These statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied. Such factors include those referenced in the safe harbor statement that's included in our earnings release and in our filings with the SEC. Also during this call we will be discussing certain non-GAAP financial measures and reconciliation to GAAP can be found in our earnings release. Finally any percentage changes that we discuss will be on a year-over-year basis and revenue growth rates will be expressed in constant currency unless otherwise noted.

Now I'd like to turn the call over to Steve MacMillan Hologic's CEO.

Executive
Stephen P. MacMillan

Thank you Mike and good afternoon everyone. We're pleased to discuss Hologic's financial results for the fourth quarter of fiscal 2019 our sixth consecutive quarter of good consistent results. Total revenue came in very strong at $865.8 million a 7.3% growth rate in constant currency that exceeded our guidance. Improving operating and net margins drove non-GAAP earnings per share of $0.65 an increase of 12.1% and in line with our expectations. We wrapped up fiscal 2019 with our best revenue growth of the year. This growth was balanced with sales increasing in each of our divisions both domestically and outside the United States. In addition to very good results in our largest businesses Breast Health and Molecular Diagnostics we are excited by the continued strengthening of Surgical which posted its best growth in 10 quarters. Before we discuss the quarterly details let me step back and give a status report on the company as a whole since we're marking the end of our fiscal year.

We have clearly made a lot of progress over the last 6 quarters. In the first half of fiscal 2018 our overall growth rate was about 2% if you strip out the divested Blood Screening business and the inorganic benefits of Cynosure. We restructured our leadership team around that time. And by the second half of last year growth had improved to the 4% range. And for the