Here's What Key Metrics Tell Us About Labcorp (LH) Q3 Earnings
Labcorp (LH) reported $3.06 billion in revenue for the quarter ended September 2023, representing a year-over-year decline of 15.2%. EPS of $3.38 for the same period compares to $4.68 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $2.99 billion, representing a surprise of +2.14%. The company delivered an EPS surprise of +0.30%, with the consensus EPS estimate being $3.37.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Labcorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Biopharma Laboratory Services: $719.10 million compared to the $729.12 million average estimate based on three analysts. The reported number represents a change of -48.9% year over year.
Revenues- Diagnostics Laboratories: $2.34 billion versus $2.26 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +6.2% change.
Adjusted Operating Income- Diagnostics Laboratories: $386.30 million versus the three-analyst average estimate of $378.31 million.
Adjusted Operating Income- Unallocated corporate expense: -$71.40 million versus -$48.33 million estimated by three analysts on average.
Adjusted Operating Income- Biopharma Laboratory Services: $109 million compared to the $108.88 million average estimate based on three analysts.
View all Key Company Metrics for Labcorp here>>>
Shares of Labcorp have returned -3.5% over the past month versus the Zacks S&P 500 composite's -3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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