Revenue Performance - For the three months ended March 31, 2025, the Company's revenues were $3,345.1 million, an increase of 5.3% from $3,176.6 million for the corresponding period in 2024[114]. - Diagnostic (Dx) revenues for the same period were $2,629.6 million, reflecting a 6.0% increase over $2,479.7 million in Q1 2024, driven by acquisitions (4.7%) and organic revenue growth (1.6%) despite a 0.3% unfavorable foreign currency translation[117]. - BLS revenues for Q1 2025 were $721.3 million, a 1.5% increase from $710.9 million in Q1 2024, primarily due to organic growth of 2.6%[119]. - The Company experienced organic revenue growth of 2.1% for the three months ended March 31, 2025, despite a 0.5% negative impact from foreign currency translation[114]. - The Company anticipates continued growth driven by strategic acquisitions and organic expansion in the upcoming quarters[114]. Cost and Expenses - Cost of revenues increased by 5.2% to $2,397.1 million, while the cost of revenues as a percentage of revenues decreased to 71.7% from 71.8% in the prior year[120]. - Selling, general, and administrative expenses rose by 7.4% to $546.0 million, with expenses as a percentage of revenues increasing to 16.3% from 16.0%[121]. - The increase in selling, general, and administrative expenses was attributed to higher personnel costs and the impact from Invitae, partially offset by LaunchPad savings[121]. Operating Income and Cash Flow - Total operating income increased by 1.5% to $326.0 million for the three months ended March 31, 2025, from $321.3 million in the same period of 2024[131]. - Net cash provided by operating activities was $18.5 million for the three months ended March 31, 2025, compared to a cash usage of $29.8 million in the same period of 2024, marking a $48.3 million improvement[137]. - Net cash used for investing activities decreased to $336.0 million for the three months ended March 31, 2025, from $393.1 million in the same period of 2024[138]. - Net cash used for financing activities surged to $839.7 million for the three months ended March 31, 2025, compared to $11.7 million in the same period of 2024, primarily due to a $1,000.0 million payment of senior notes[141]. - Cash and cash equivalents increased to $369.4 million at March 31, 2025, from $99.3 million at the same date in 2024[136]. Capital Expenditures and Debt - Capital expenditures were $126.0 million for the three months ended March 31, 2025, representing 3.8% of revenues, with expectations to maintain this level for the remainder of 2025[140]. - The company had $1,000.0 million available under its revolving credit facility as of March 31, 2025, with compliance to all covenants related to its debt obligations[142]. - Some of the Company's debt is subject to variable interest rates, affecting financial results due to interest rate fluctuations[156]. - The Company entered into fixed-to-variable interest rate swap agreements for $500.0 million of senior notes due 2031, with variable rates based on the three-month Secured Overnight Financing Rate plus 1.0706%[158]. Foreign Currency Exposure - Approximately 13.0% of the Company's revenues for Q1 2025 were denominated in currencies other than the U.S. dollar, compared to 13.8% in Q1 2024[153]. - A hypothetical 10% change in average exchange rates would have impacted income before income taxes for Q1 2025 by approximately $6.3 million[153]. - The Company had 14 open foreign exchange forward contracts with a total notional value of approximately $496.4 million as of March 31, 2025[154]. - The Company is party to cross-currency swap agreements with an aggregate notional amount of $1,200.0 million, maturing between 2029 and 2034[155]. Amortization and Impairments - Amortization of intangibles and other assets increased by 15.8% to $69.6 million for the three months ended March 31, 2025, compared to $60.1 million in the same period of 2024[122]. - Goodwill and other asset impairments were eliminated, showing a 100% decrease from $2.5 million in the three months ended March 31, 2024[124]. Interest Expense - Interest expense rose by 19.4% to $56.0 million for the three months ended March 31, 2025, compared to $46.9 million in the same period of 2024[127].

Core Insights - Labcorp reported revenue of $3.35 billion for the quarter ended March 2025, reflecting a year-over-year increase of 5.3% [1] - The company's EPS was $3.84, up from $3.68 in the same quarter last year, exceeding the consensus estimate of $3.73 by 2.95% [1] - The revenue fell short of the Zacks Consensus Estimate of $3.41 billion, resulting in a surprise of -2.04% [1] Financial Performance Metrics - The net book-to-bill ratio was reported at 1.1%, surpassing the estimated 1% by analysts [4] - Revenue from Biopharma Laboratory Services was $721.30 million, below the average estimate of $742.69 million, but showing a year-over-year increase of 1.5% [4] - Revenue from Diagnostics Laboratories was $2.63 billion, compared to the average estimate of $2.69 billion, with a year-over-year increase of 6.1% [4] - Adjusted Operating Income for Biopharma Laboratory Services was $106.90 million, slightly below the estimated $108.86 million [4] - Adjusted Operating Income for Diagnostics Laboratories was $427.50 million, compared to the average estimate of $435.69 million [4] Stock Performance - Labcorp's shares have returned -1.4% over the past month, while the Zacks S&P 500 composite has changed by -0.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Labcorp Holdings (LH) reported a mixed performance in Q1 2025, with adjusted EPS beating estimates but revenues missing expectations, indicating a year-over-year growth trend despite challenges [1][2][9]. Financial Performance - Adjusted EPS for Q1 2025 was $3.84, a 4.3% increase from the previous year, surpassing the Zacks Consensus Estimate by 2.9% [1] - GAAP EPS was $2.52, down from $2.69 in the same period last year [1] - Revenues rose 5.3% year-over-year to $3.35 billion but fell short of the Zacks Consensus Estimate by 2% [2] - Organic revenue growth contributed 2.1%, while acquisitions added 3.7%, offset by a 0.5% loss from foreign currency translation [2] Segment Performance - Diagnostics Laboratories generated $2.63 billion in revenues, reflecting a 6% year-over-year improvement [3] - Biopharma Laboratory Services revenues increased by 1.5% to $721.3 million, driven by organic growth of 2.6% but impacted by a 1.1% foreign currency translation loss [4] Margin Analysis - Gross margin expanded by 9 basis points to 28.3%, despite a 5.2% rise in the cost of revenues [5] - Adjusted operating income improved by 3.4% year-over-year to $402 million, but the adjusted operating margin contracted by 23 basis points to 12% due to a 7.4% increase in SG&A expenses [5] Cash Position - Cash and cash equivalents at the end of Q1 were $369.4 million, down from $1.52 billion at the end of Q4 2024 [6] - Long-term debt increased to $5.57 billion from $5.33 billion at the end of Q4 2024 [6] - Cumulative cash inflow from operating activities was $18.5 million, a recovery from a cash outflow of $29.8 million at the end of 2024 [6] 2025 Guidance - Labcorp expects total revenues for 2025 to grow between 6.7% and 8%, with Diagnostics Laboratories revenues projected to increase by 6.5% to 7.7% and Biopharma Laboratory Services revenues forecasted between 3% and 5% [7] - The Zacks Consensus Estimate for full-year revenues is $13.93 billion, with adjusted EPS expected to be in the range of $15.70 to $16.40 [8] Strategic Developments - The company is advancing its pipeline of acquisitions and partnerships, expanding its test menu in oncology, women's health, autoimmune disease, and neurology [9] - Labcorp launched its liquid biopsy test, Labcorp Plasma Complete, indicating a focus on innovative developments [9]

Core Insights - Labcorp reported quarterly earnings of $3.84 per share, exceeding the Zacks Consensus Estimate of $3.73 per share, and showing an increase from $3.68 per share a year ago, resulting in an earnings surprise of 2.95% [1] - The company posted revenues of $3.35 billion for the quarter, which was below the Zacks Consensus Estimate by 2.04%, but an increase from $3.18 billion year-over-year [2] - Labcorp has surpassed consensus EPS estimates in all four of the last quarters and has topped revenue estimates three times during the same period [2] Earnings Outlook - The sustainability of Labcorp's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $4.12 on revenues of $3.48 billion, and for the current fiscal year, it is $16.01 on revenues of $13.93 billion [7] Industry Context - The Medical - Dental Supplies industry, to which Labcorp belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Labcorp's stock performance [5][6]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $3.3 billion, an increase of 5.3% year-over-year, driven by organic growth of 2.1% and net acquisitions of 3.7%, partially offset by foreign currency translation of 0.5% [17] - Adjusted earnings per share (EPS) was $3.84, up 4% year-over-year [19] - Operating income for the quarter was $326 million, or 9.7% of revenue, with adjusted operating income at $469 million, or 14% of revenue [17][18] Business Line Data and Key Metrics Changes - Diagnostics Laboratories revenue was $2.6 billion, a 6% increase year-over-year, with organic growth of 1.6% and net acquisitions contributing 4.7% [21] - Biopharma Laboratory Services (BLS) revenue was $721 million, a 1.5% increase year-over-year, with organic revenue growth of 2.6% [23] - Diagnostics adjusted operating income was $428 million, or 16.3% of revenue, compared to $418 million, or 16.9% of revenue last year [22] Market Data and Key Metrics Changes - The book-to-bill ratio for BLS was strong at 1.13 for the quarter, with a trailing twelve-month ratio of 1.07 [24] - Total volume in Diagnostics increased by 3% year-over-year, with organic volume contributing 0.9% [21] Company Strategy and Development Direction - The company aims to be a partner of choice for health systems and local laboratories, focusing on launching new tests in high-growth therapeutic areas [10] - Strategic collaborations and acquisitions, such as with Inspira Health and BioReference Health, are expected to enhance growth in oncology and other areas [11] - The company is focused on four strategic areas: oncology, women's health, autoimmune disease, and neurology, which are projected to grow significantly faster than other therapeutic areas [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic macroeconomic and regulatory environment, reaffirming revenue and free cash flow guidance while increasing the midpoint of EPS guidance [9] - The company anticipates some impact from tariffs and regulatory changes but believes it is well-positioned to manage these challenges [40][41] - Management remains optimistic about the integration of Invitae, expecting it to be slightly accretive to earnings for the full year [80] Other Important Information - The company reported a free cash flow use of $108 million for the quarter, with expectations of $1.1 billion to $1.25 billion for the full year [20] - The company has developed flexible supply chains to mitigate tariff impacts and is actively negotiating with suppliers [41] Q&A Session Summary Question: Variability in BLS segment guidance - Management indicated that the BLS business had about 3% overall growth, with continued strength in the book-to-bill ratio, allowing for a cautious but optimistic revenue guidance range [34] Question: Tariffs impact on guidance - Management confirmed that tariffs are embedded in guidance, with a focus on maintaining operational resilience through flexible supply chains [40] Question: Expectations on organic growth in Diagnostics - Management expects about half of the growth to come from organic sources, with adjustments for weather and revenue days indicating a stronger underlying trend [48] Question: Impact of regulatory changes on early development - Management noted that while there are ongoing discussions about non-animal testing, the current reliance on animal models is minimal and not expected to significantly impact revenue [71] Question: Invitae's performance and integration - Management expressed confidence in Invitae's integration, expecting it to contribute positively to earnings as the year progresses [81] Question: Pricing discussions with customers - Management reported that pricing has remained relatively flat, with a focus on improving volume growth rather than significant price increases [125]

FOR IMMEDIATE RELEASE Media Investors Neil Hirsch Christin Odonnell Media@labcorp.com Investor@labcorp.com Labcorp Announces 2025 First Quarter Results Updates Full-Year Guidance BURLINGTON, N.C., April 29, 2025 – Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, today announced results for the first quarter ended March 31, 2025 and updated full-year guidance. "Labcorp delivered solid performance in the first quarter of 2025," said Adam Schechter, chairman and CEO of L ...

Core Insights - Labcorp reported solid performance in Q1 2025, with a revenue increase of 5.3% year-over-year, reaching $3.35 billion, while adjusted EPS rose to $3.84 from $3.68 in the previous year [5][7][40] - The company updated its full-year guidance, maintaining revenue growth expectations of 6.7% to 8.0% and adjusted EPS range of $15.70 to $16.40, with the midpoint raised by $0.05 [23][24] Financial Performance - Revenue for Q1 2025 was $3.35 billion, compared to $3.18 billion in Q1 2024, reflecting a 5.3% increase [5][7] - Adjusted EPS for Q1 2025 was $3.84, up from $3.68 in Q1 2024, while diluted EPS decreased to $2.52 from $2.69 [5][40] - Operating income for Q1 2025 was $326 million, slightly up from $321.3 million in Q1 2024, with adjusted operating income at $469 million, compared to $452.8 million in the previous year [8][40] Cash Flow and Capital Allocation - Operating cash flow improved to $18.5 million in Q1 2025 from a negative $29.8 million in Q1 2024 [10][37] - The company invested $210.5 million in acquisitions and partnerships during the quarter and paid out $61.6 million in dividends [12][37] Strategic Initiatives - Labcorp entered a strategic collaboration with Inspira Health to manage hospital laboratory operations and acquired assets from BioReference Health and North Mississippi Health Services [6][12] - New tests introduced include Labcorp Plasma Complete for cancer and pTau-217/Beta Amyloid 42 Ratio for Alzheimer's diagnosis, expanding the test menu in oncology and neurology [5][6] Market Position and Outlook - Labcorp continues to position itself as a partner of choice for hospitals and health systems, leveraging science and technology to enhance its service offerings [3][5] - The company anticipates ongoing growth in diagnostics and drug development, supported by its strategic acquisitions and partnerships [3][23]

Core Insights - Labcorp has expanded its precision oncology portfolio with the introduction of Labcorp Plasma Detect for assessing recurrence risk in stage III colon cancer patients and the PGDx elio plasma focus Dx liquid biopsy test for targeted treatment selection [1][2] Group 1: Labcorp Plasma Detect - Labcorp Plasma Detect is a blood-based test utilizing whole-genome sequencing (WGS) to detect circulating tumor DNA (ctDNA), which indicates the presence of molecular residual disease (MRD) [3] - The test aims to identify patients at higher risk of recurrence, as stage III colon cancer has a nearly 30% recurrence rate within five years [3] - Labcorp Plasma Detect will initially be offered through an Early Experience Program, with plans for broader availability [4] Group 2: PGDx elio plasma focus Dx - PGDx elio plasma focus Dx is the first kitted pan-solid tumor liquid biopsy test authorized by the FDA, designed to aid oncologists in targeted treatment selection from a simple blood draw [5] - The test combines a WGS approach with proprietary bioinformatics, achieving a limit of detection (LOD95) of 0.005% for ctDNA [5] - Results are available approximately 14 days after the initial sample is received, with a seven-day turnaround for subsequent monitoring [5] Group 3: Clinical Studies and Implementation - Labcorp Plasma Detect is currently being evaluated in over 10 clinical studies in the U.S. and internationally to assess MRD across various cancer types [6] - The kitted model of PGDx elio plasma focus Dx allows clinical laboratories to maintain control over patient specimens and data, facilitating rapid implementation with only on-site verification required [6] - The test provides actionable findings within a 4-to-5-day turnaround time, enhancing the efficiency of genomic profiling workflows [6][7] Group 4: Industry Engagement - Labcorp will present key studies related to Labcorp Plasma Detect and PGDx elio plasma focus Dx at the AACR 2025 Annual Meeting [8] - The company emphasizes its commitment to transforming cancer diagnostics and improving patient outcomes through innovative solutions [2]

Core Viewpoint - Labcorp Holdings Inc. is expected to report its first-quarter 2025 results on April 29, with positive revenue and earnings estimates indicating growth compared to the previous year [1][2]. Q1 Estimates - The Zacks Consensus Estimate for Labcorp's first-quarter 2025 revenues is $3.42 billion, reflecting a 7.6% increase from the prior year [1]. - The expected EPS for the first quarter of 2025 is $3.74, which is a 1.6% improvement [2]. Estimate Revision Trend - Earnings estimates for Labcorp's first-quarter have decreased by 1 cent to $3.74 in the past week [3]. Factors at Play Diagnostics Laboratories (Dx) - The Dx segment is anticipated to maintain strong momentum due to organic growth and acquisitions, with a projected 8.4% year-over-year revenue increase [4][7]. - Recent partnerships and laboratory expansions, including collaboration with Inspira Health and the acquisition of Lab Works assets, are expected to significantly boost revenues [5][6]. Biopharma Laboratory Services (BLS) - The BLS segment is likely to benefit from the strength in Central Laboratories, with a projected 7.6% year-over-year revenue improvement [8][11]. - Enhanced digital solutions and strong customer adoption of Labcorp Diagnostics Assistant are expected to contribute positively to revenues [9][10]. Operational Performance - Both Dx and BLS segments are expected to see improved margins, aided by cost management initiatives that achieved annual savings of $100-$125 million [12]. - The adjusted operating income for the Dx business is estimated to increase by 4.3%, while the BLS arm is projected to see a 9% improvement year-over-year [12].

Core Insights - The genetic screening testing market for preventive health is experiencing rapid growth due to technological advancements, increased consumer interest in personalized medicine, and a rise in preventive healthcare strategies [2][3][5]. Market Overview - The market is driven by improvements in genetic testing technologies, such as next-generation sequencing (NGS), which have made tests more accessible, cost-effective, and accurate [3][5]. - Growing consumer awareness of early detection benefits, rising healthcare costs, and a focus on prevention are fueling demand [3][6]. Market Dynamics - The increasing availability of direct-to-consumer genetic tests empowers individuals to manage their health and gain insights into genetic predispositions [4][5]. - Stakeholders include genetic testing companies, healthcare providers, hospitals, diagnostic laboratories, and wellness organizations [4]. Regional Analysis - North America holds the largest market share, driven by technological advancements and high consumer awareness, with the U.S. being a key player [8]. - Europe is characterized by high demand for genetic tests related to cancer and cardiovascular diseases, with significant investments in preventive healthcare [9]. - The Asia-Pacific region is experiencing significant growth due to rising healthcare awareness and investment in healthcare infrastructure, with China and India emerging as key markets [10]. - The Middle East and Africa show emerging opportunities for genetic screening, particularly in the UAE, Saudi Arabia, and South Africa [11]. Competitive Landscape - Key players in the market include Exact Science, Labcorp Genetics Inc., Blueprint Genetics, Ambry Genetics, and others [7]. - The competitive landscape is marked by strategies such as funding activities, mergers and acquisitions, regulatory approvals, and partnerships [18].