Laboratory Corp. of America Holdings (NYSE: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 #2 (Buy) but that could change following its third 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 $2.38 per share over the last 30 days. LabCorp’s adjusted earnings per share of $2.46 is also up 9.3% 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 sales of $2.65 billion, which has beaten the Zacks Consensus Estimate for sales of $2.56 billion. The figure is also up 9.9% on year-over-year basis.
Key Stats: Revenues from LabCorp Diagnostics segment increased 9.9% year over year to $1.84 billion in the third quarter, with total volume growth of 7.3%. Revenues from Covance Drug Development segment increased 8.6% to $761.1 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 third quarter results. Per management, the Diagnostics business had witnessed strong organic and total volume growth despite the adverse impact from hurricanes. Also, the Drug development business witnessed solid growth on the back of increased net orders and improving net book-to-bill. The company has also increased its 2017 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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Laboratory Corporation of America Holdings (LH): Free Stock Analysis Report
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