Advances Labcorp strategy to launch and scale specialty testing in areas such as oncology and rare diseases Transaction requires court approval, with confirmation expected on May 6, 2024 BURLINGTON, N.C., April 24, 2024 /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, announced today that it has been selected as the winning bidder for select assets of Invitae, a leading medical genetics company.  Before the transaction can proceed, the court overseeing ...

– Labcorp Selected as Winning Bidder in Court-Supervised Sale Process, Subject to Court and Regulatory Approvals – – $239 Million Cash Bid Includes Acquisition of Substantially All of the Company's Assets, Ensuring Business Continuity for Customers, Partners and Employees – SAN FRANCISCO, April 24, 2024 /PRNewswire/ -- Invitae (OTC:NVTA), a leading medical genetics company, announced that Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, has been selected as the winnin ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Labcorp (LH) , which belongs to the Zacks Medical - Dental Supplies industry.This medical laboratory operator has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 0.30%.For the last reported quarter, Labcorp came out with earnings of $3 ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being un ...

Innovative GFAP blood biomarker test expands Labcorp's portfolio of tests for diseases including Alzheimer's disease, multiple sclerosis, glioblastoma and brain injuries BURLINGTON, N.C., April 15, 2024 /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, today announced the availability of the nation's first test for glial fibrillary acidic protein (GFAP), a critical blood-based biomarker for the early detection of neurodegenerative diseases and neurologi ...

Revenue Growth and Performance - Company's revenues from continuing operations increased by 2.5% to $12.2 billion in 2023, driven by acquisitions (1.7%), organic revenue growth (0.6%), and favorable foreign currency translation (0.2%)[328] - Organic revenue growth of 0.6% was driven by an 8.7% increase in Base Business, partially offset by an 8.1% decrease in COVID-19 Testing[328][329] - Dx revenues increased by 2.3% to $9,415.1 in 2023, with organic Base Business contributing 10.7% growth, partially offset by a 10.5% decline in COVID-19 Testing[337] - BLS revenues increased by 2.9% to $2,774.2 in 2023, driven by organic Base Business growth (1.6%) and favorable foreign currency translation (1.5%)[339] - BLS backlog expected to convert to revenue in the next 12 months is $2,470.0, representing 30.0% of current BLS revenues[339] Cost and Expense Analysis - Cost of revenues increased by 7.9% to $8,796.7 in 2023, with cost of revenues as a percentage of revenues rising to 72.3% due to reduced COVID-19 Testing revenues and higher personnel expenses[344] - Selling, general and administrative expenses increased by 14.7% to $2,021.4 in 2023, primarily due to spin-off-related costs and higher personnel expenses[346] - General corporate expenses increased by 37.4% to $644.1 million in 2023, driven by spin-off transaction costs, personnel costs, and R&D expenses[366] - Interest expense increased by 11.0% to $199.6 million in 2023 compared to $179.8 million in 2022, primarily due to higher interest rates on variable rate debt and increased borrowings[354] - Equity method income, net decreased by 125.9% to $5.4 million in 2023 from $(1.4) million in 2022, driven by the sale of a joint venture interest and acquisition of another joint venture[356] - Other, net increased to $15.5 million in 2023 from $(32.2) million in 2022, primarily due to $46.1 million in transition services fees charged to Fortrea[358] - Income tax expense decreased to $188.5 million in 2023 from $233.9 million in 2022, with the effective tax rate rising to 33.1% due to goodwill impairment[360] Segment Performance - Dx segment operating income decreased by 21.4% to $1,591.3 million in 2023, with operating margin declining 510 basis points to 16.9%, driven by lower COVID-19 testing and higher personnel costs[364] - BLS segment operating income increased by 1.8% to $396.3 million in 2023, with operating margin slightly down by 10 basis points to 14.3%, due to demand growth and LaunchPad savings[365] Spin-off and Financial Transactions - Company completed the spin-off of Fortrea on June 30, 2023, with Fortrea distributing $1,600.0 in cash to the Company, which was used for share repurchases and debt repayment[330][333] - Fortrea issued $570.0 of 7.500% senior secured notes due 2030 and entered into three floating SOFR credit facilities totaling $1,520.0 prior to the spin-off[332] - The company amended its revolving credit facility to a five-year facility with a principal amount of up to $1,000.0 million, with an option to increase by an additional $500.0 million, subject to lender agreement[381] Share Repurchases and Dividends - The company repurchased 4.8 million shares of its Common Stock in 2023 at an average price of $206.85 per share, totaling $1,000.0 million, and accrued $9.0 million in excise tax related to the repurchase[384] - In 2022, the company repurchased 4.7 million shares of its Common Stock at an average price of $233.48 per share, totaling $1,100.0 million[385] - The company paid $254.0 million in Common Stock dividends for the year ended December 31, 2023, and announced a cash dividend of $0.72 per share for Q1 2024, totaling approximately $61.5 million[386] Cash Flow and Capital Expenditures - Net cash provided by operating activities decreased by $562.5 million to $1,202.3 million in 2023, primarily due to lower COVID-19 testing earnings and higher working capital[374] - Capital expenditures were $453.6 million in 2023, representing 3.7% of revenues, with expected 2024 expenditures at approximately 3.5% of revenues[376] - Net cash used in financing activities increased to $1,559.0 million in 2023, driven by $1,000.0 million in share repurchases and $300.0 million in senior note repayments[377] Goodwill and Asset Impairments - Company recorded $349.0 in goodwill and other asset impairments in 2023, primarily due to $333.6 of goodwill impairment for the Early Development reporting unit[348] - The company recorded a goodwill impairment of $333.6 million in the BLS segment due to lower demand in the ED reporting unit, which is expected to continue into early 2024[416] Foreign Exchange and Currency Risk - Approximately 12.9% of the company's revenues for 2023 were denominated in currencies other than the U.S. dollar, with significant exposure to the Canadian dollar, Swiss franc, euro, and British pound[424] - A hypothetical 10% change in average exchange rates would have impacted income before taxes by approximately $24.1 million in 2023[424] - The company had 9 open foreign exchange forward contracts with a notional value totaling approximately $305.8 million at the end of 2023[425] - The company is party to USD to Swiss Franc cross-currency swap agreements with a notional amount of $600.0 million, maturing in 2024 and 2025[426] - The company entered into fixed-to-variable interest rate swap agreements for the 2.70% senior notes due 2031 with an aggregate notional value of $500.0 million[429] - The company's financial statements are reported in USD, and fluctuations in exchange rates affect the translation of revenues and expenses denominated in foreign currencies[424] - The company's gross accumulated currency translation adjustments were $183.1 million at the end of 2023, compared to $(336.4) million at the end of 2022[424] Debt and Interest Rate Management - The company's debt is subject to variable interest rates, and it manages interest rate risk through a mix of fixed and variable rate debt, including interest rate swaps[427] Legal and Contingent Liabilities - The company's legal reserve is determined using historical loss rates and trends in settlements and defense costs, with reserves established for probable and estimable loss contingencies[422] Revenue Recognition - The company's Dx segment recognizes revenue when diagnostic testing is complete and results are reported, with revenues distributed among four payer portfolios: clients, patients, Medicare and Medicaid, and third-party payers[392] - The company's BLS segment recognizes revenue over time based on the extent of progress towards completion of performance obligations, with contracts typically taking the form of fixed-price or fee-for-service arrangements[400] Goodwill and Intangible Asset Assessment - The company assesses goodwill and indefinite-lived intangibles for impairment annually or when events indicate that the carrying amount may not be recoverable, with an option to perform a qualitative assessment before a quantitative test[410] Liquidity and Financial Position - The company believes it has sufficient liquidity to meet its short-term and long-term cash needs for the next 12 months, based on current and projected cash flows and availability under its revolving credit facility[390] - The company provided letters of credit aggregating approximately $91.3 million as of December 31, 2023, primarily for insurance programs[389] - The company's contractual value of the noncontrolling interest put in its Ontario subsidiary totaled $15.5 million at December 31, 2023[389]

Laboratory Corporation of America Holdings (NYSE:LH) Q4 2023 Earnings Conference Call February 15, 2024 9:00 AM ET Company Participants Christin O'Donnell - VP of IR Adam Schechter - Chairman and CEO Glenn Eisenberg - EVP and CFO Conference Call Participants Jack Meehan - Nephron Research Kevin Caliendo - UBS Erin Wright - Morgan Stanley Stephanie Davis - Barclays Patrick Donnelly - Citi Brian Tanquilut - Jefferies Pito Chickering - Deutsche Bank Elizabeth Anderson - Evercore ISI Eric Coldwell - Baird Lisa ...

labcorp This presentation contains forward-looking statements, including, but not limited to, statements with respect to (i) the estimated 2024 guidance and related assumptions, (ii) the recently completed spin-off of the company's Clinical Development and Commercialization Services business, now Fortrea Holdings Inc.; (iii) the impact of various factors on operating and financial results, including the impact of the COVID-19 pandemic on the company's businesses, operating results, cash flows and/or financi ...

FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 1-11353 LABORATORY CORPORATION OF AMERICA HOLDINGS (Exact name of registrant as specified in its charter) | Delaware | | 13-3 ...

Financial Data and Key Metrics Changes - In the third quarter, revenue totaled $3.1 billion, representing a 6.6% increase compared to the previous year, primarily driven by organic growth and acquisitions, partially offset by lower COVID testing [46][97] - Adjusted earnings per share (EPS) was $3.38, down 16% from last year due to reduced COVID testing earnings, while base business adjusted EPS increased approximately 10% [54][76] - Operating cash flow from continuing operations was $276 million, burdened by approximately $56 million of spin-related items [54][99] Business Line Data and Key Metrics Changes - Diagnostics laboratories revenue was $2.3 billion, a 6.2% increase year-over-year, driven by organic growth of 3.4% and acquisitions contributing 3% [55][101] - Biopharma Laboratory Services revenue increased by 7.9% to $719 million, primarily due to organic revenue growth of 4.9% and foreign currency impact of 3.3% [101] - COVID testing revenue decreased by 87%, significantly impacting overall revenue and margins [55][76] Market Data and Key Metrics Changes - The backlog at the end of the quarter was $7.8 billion, with an expectation of approximately $2.4 billion converting to revenue over the next 12 months [57] - The trailing 12 months book-to-bill ratio was 1.12, indicating a healthy demand despite some cancellations in early development [57][105] Company Strategy and Development Direction - The company aims to drive growth by expanding its base business and integrating hospital and health system partnerships, focusing on specialty testing and companion diagnostics [64][51] - The Launchpad initiative is expected to deliver $350 million in savings over three years, contributing to margin improvement [98][129] - The company is strategically positioned to capitalize on growth in cell and gene therapy, consumer markets, and international expansion through innovative specialty testing [96] Management's Comments on Operating Environment and Future Outlook - The management noted a challenging labor environment but highlighted improvements in retention rates, with expectations for continued progress [28][29] - The company anticipates a 5% to 8% overall enterprise revenue growth from 2023 to 2026, with a focus on maintaining margins despite headwinds from PAMA and reduced COVID testing [50][88] - Management expressed confidence in the strength of the diagnostic business, even during potential recessionary periods, due to its broad-based demand [133] Other Important Information - The company finalized several strategic partnerships, including agreements with Tufts Medicine and Baystate Health, enhancing its presence in key markets [48][66] - The adjusted operating income for diagnostics laboratories was $386 million, or 16.5% of revenue, compared to $440 million or 19.9% last year, reflecting the impact of lower COVID testing [74] Q&A Session Summary Question: Can you comment on the reimbursement negotiations with payers versus CMS? - Management indicated that laboratory developed tests represent less than 10% of volume but are crucial for new specialty areas, emphasizing the importance of getting these tests to patients quickly [5][6] Question: What is the current status of managed care contracting? - Management reported being in a good position with finalized or near-finalized contracts, expecting flat to slightly positive outcomes as they move into the next year [122] Question: How is the labor environment affecting operations? - Management acknowledged a tough labor environment but noted improvements in retention rates and ongoing efforts to manage costs effectively [27][28] Question: What are the expectations for the early development business? - Management stated that early development is a small part of the business, with ongoing evaluations and a focus on strategic partnerships to enhance growth [30][31] Question: How does the company view the impact of PAMA on margins? - Management built in an $80 million downside into the base case for PAMA, with expectations for margin improvement in subsequent years [88][132]