LabCorp 1Q net income slips 9 percent

LabCorp 1st-quarter net income falls on restructuring costs and bad weather slows testing

Associated Press

BURLINGTON, N.C. (AP) -- Medical laboratory operator LabCorp said Friday that net income fell 9 percent in the first quarter on costs related to restructuring and disruptions from bad weather.

Laboratory Corp. of America Holdings said requests for testing grew about 1.1 percent and revenue per request for testing edged up 0.2 percent. However the company said bad weather reduced testing volume and cut into its profit, and Medicare payments were also down.

LabCorp said weather reduced its income by 4 cents per share and its testing volume growth by about 0.5 percent. Its net income dropped to $147.2 million, or $1.56 per share, from $161.6 million, or $1.63 per share. The company made $1.74 per share, excluding one-time charges related job severance, restructuring, and other items. Revenue rose 1 percent, to $1.44 billion.

Analysts expected $1.77 per share and $1.46 billion in revenue, according to FactSet.

LabCorp maintained its outlook for the full year for adjusted net income of $6.85 to $7.15 per share and revenue growth of 2 to 3 percent, which implies $5.78 billion to $5.84 billion.

Analysts estimate earnings of $7.13 per share and $5.79 billion in revenue.

Shares of LabCorp rose $1 to $94.11 in afternoon trading.

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