LabCorp (LH) Tops Q4 Earnings & Misses Revenue Estimates
Laboratory Corp. of America Holdings LH is a leading independent clinical laboratory, whose offerings include a broad range of routine tests (including blood chemistry analysis, urinalyses, blood cell count, thyroid test, Pap tests and HIV tests) as well as specialty testing operations or esoteric testing.
Currently, LabCorp has a Zacks Rank #3 (Hold) but that could change following its fourth quarter 2017 earnings report which has just released. (You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.) We have highlighted some of the key details from the just-released announcement below:
Earnings: The Zacks Consensus Estimate is pegged at $2.37 per share over the last 30 days. LabCorp’s adjusted earnings per share of $2.45 is also up 14% on year-over-year basis.
Laboratory Corporation of America Holdings Price and EPS Surprise
Laboratory Corporation of America Holdings Price and EPS Surprise | Laboratory Corporation of America Holdings Quote
Sales: LabCorp posted net revenues of $2.70 billion, which has missed the Zacks Consensus Estimate of $2.71 billion. The figure is up 13.2% on year-over-year basis.
Key Stats: Revenues from LabCorp Diagnostics segment increased 8.6% year over year to $1.82 billion in the fourth quarter, with total volume growth of 6.6%. Revenues from Covance Drug Development segment increased 23.8% to $886.1 million, owing to the acquisition of Chiltern, as well as organic growth and the benefit from foreign currency translation.
Major Factors: Management seemed to be upbeat about LabCorp’s impressive fourth quarter and full year results. Per management, the Diagnostics and Drug Development businesses each delivered excellent performance in the fourth quarter through a combination of strategic acquisitions, organic initiatives, and margin improvement. The company has also provided its 2018 guidance.
Stock Price: Following the earnings release, share prices did not show any movement in the pre-market trading session
Check back later for our full write up on this LabCorp earnings report later!
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