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LabCorp (LH) Q1 Earnings in Line, Revenues Beat 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 impressive first quarter 2016 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:

Earnings: The Zacks Consensus Estimate remained steady at $1.96 per share over the last 30 days. LabCorp’s adjusted earnings per share of $2.02 beat this estimate by 3.1%.

Sales: LabCorp posted sales of $2.295 billion, comfortably beating the Zacks Consensus Estimate for revenues of $2.197 billion.

Key Stats: Revenues from LabCorp Diagnostics segment increased 7.2% year over year to $1.59 billion in the first quarter, with total volume growth of 4%. Revenues from Covance Drug Development segment increased 12.6% to $703.1 million, owing to increased broad-based demand.

Major Factors:LabCorp commenced 2016 with an impressive start, delivering robust organic revenue growth and double-digit adjusted EPS growth in the first quarter. Segmental results were also promising reflecting strong year over year growth. Moreover the company raised its 2016 guidance in terms of revenue, EPS as well as free cash flow.

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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