Connor McNamara's questions to Hologic Inc (HOLX) leadership • Q4 2024
Question
Representing Connor McNamara, an analyst asked how the return to normal growth in the gantry business intersects with past chip shortages and equipment replacement cycles. He also questioned how the focus on lower-margin international business impacts the goal of reaching the 31.5% pre-pandemic operating margin.
Answer
Chief Financial Officer Karleen Oberton explained that the company has intentionally made technology upgrades backwards-compatible to avoid creating pent-up demand, leading to a more normalized, ongoing replacement cycle. She added that while international growth is dilutive, the company balances this by driving leverage within the international business itself, allowing for continued overall margin improvement toward the fiscal 2025 goal of 30% plus 50-100 basis points of expansion.