Laboratory Corp of America Holdings (LH) Reports Q3 2023 Earnings
Third quarter revenue grew 6.6% compared to last year, reaching $3.06 billion.
Diluted EPS for the quarter was $2.11, down from $3.06 in the same period last year.
Free Cash Flow remained stable at $170.6 million, slightly up from $170.2 million last year.
Full-Year 2023 Guidance from Continuing Operations forecasts an Adjusted EPS of $13.25 to $13.75.
On October 26, 2023, Laboratory Corp of America Holdings (NYSE:LH) announced its third quarter results for the period ending September 30, 2023. The company reported a revenue growth of 6.6% compared to the same period last year, with the Base Business growing by 14.0%. The revenue for the quarter was $3.06 billion, up from $2.87 billion in Q3 2022.
Financial Performance
The company's Diluted EPS for the quarter was $2.11, a decrease from $3.06 in Q3 2022. The Adjusted EPS was $3.38, down from $4.01 in the same period last year. Free Cash Flow for the quarter was $170.6 million, slightly up from $170.2 million in Q3 2022.
For the full year 2023, Laboratory Corp of America Holdings (NYSE:LH) expects an Adjusted EPS from Continuing Operations of $13.25 to $13.75 and a Free Cash Flow excluding spin-related items of $0.85 billion to $0.95 billion.
Strategic Advancements
During the quarter, the company advanced its hospital and health system strategy through multiple new agreements. It also launched the ATN (Amyloid-Tau-Neurodegeneration) Profile, a new test designed to accelerate the diagnosis of Alzheimers disease.
Labcorp delivered strong third quarter results in our Diagnostics Laboratories and Biopharma Laboratory Services businesses, said Adam Schechter, chairman and CEO. The company has momentum in our health system strategy and is significantly advancing our specialty testing capabilities. We continue to harness science and technology to drive innovation and accelerate growth.
Consolidated Results
Revenue for the quarter was $3.06 billion, an increase of 6.6% from $2.87 billion in the third quarter of 2022. Operating income for the quarter was $252.3 million, compared to $374.0 million in the third quarter of 2022. Net earnings from continuing operations for the quarter were $183.6 million compared to $277.3 million in the third quarter of 2022.
Outlook for 2023
Laboratory Corp of America Holdings (NYSE:LH) is updating its full-year guidance for 2023 to reflect its third quarter performance and full year outlook. The company expects a total revenue growth of 1.9% to 2.7% and an Adjusted EPS of $13.25 to $13.75.
Explore the complete 8-K earnings release (here) from Laboratory Corp of America Holdings for further details.
This article first appeared on GuruFocus.
