Julia Wang Named Chief Financial Officer Beginning December 2, 2024BURLINGTON, N.C., Nov. 19, 2024 /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, announced today that Executive Vice President and Chief Financial Officer (CFO) Glenn Eisenberg will retire from the company and Julia Wang will join on December 2, 2024, as Executive Vice President and Chief Financial Officer. Mr. Eisenberg will remain at Labcorp as Special Advisor to the CEO through April ...

Labcorp Holdings Inc. (LH) , or Labcorp, is positioning itself for sustained growth with a series of strategic acquisitions and partnerships. With a growing emphasis on cell and gene therapy, the company aims to become a preferred development lab by leveraging its drug development expertise, scientific prowess and pharma relationships. The LaunchPad initiative also nears its targeted goal, which is highly promising. However, adverse macroeconomic impacts and currency fluctuations may dent the company’s grow ...

Revenue Performance - Revenues for the nine months ended September 30, 2024, were $9,679.5 million, an increase of 6.0% from $9,128.3 million during the same period in 2023[89]. - Total revenues for the three months ended September 30, 2024, were $3,282.0 million, an increase of 7.4% over $3,056.8 million in the third quarter of 2023[90]. - Dx revenues for the three months ended September 30, 2024, were $2,553.5 million, an increase of 8.9% over $2,344.7 million in the third quarter of 2023[91]. - BLS revenues for the three months ended September 30, 2024, were $737.7 million, an increase of 2.6% over $719.1 million in the third quarter of 2023[91]. - Revenues for the nine months ended September 30, 2024, increased by 6.0% to $9,679.5 million, driven by organic revenue growth of 3.4% and acquisitions net of divestitures contributing 2.4%[104]. - Dx segment revenues for the nine months ended September 30, 2024, were $7,558.1 million, reflecting a 6.9% increase from $7,068.3 million in the same period of 2023[104]. Organic Growth - The increase in organic revenue for the three months ended September 30, 2024, was 4.2%, driven by a 4.8% increase in the Company's organic Base Business[90]. - The organic growth for the nine months ended September 30, 2024, was defined as an increase in revenue excluding the impact of acquisitions, divestitures, and currency[89]. - The 4.5% increase in the Company's organic Base Business was partially offset by a 1.1% decrease in COVID-19 PCR testing[89]. - The Company experienced a 5.0% increase in organic revenue for Dx, driven by a 5.7% increase in the Base Business[91]. - The Company reported a 2.2% increase in organic volume for Dx for the three months ended September 30, 2024[91]. Costs and Expenses - Cost of revenues increased by 7.8% to $2,377.6 million for the three months ended September 30, 2024, compared to $2,205.6 million in the same period of 2023, with cost of revenues as a percentage of revenues rising to 72.4% from 72.2%[92][93]. - Selling, general and administrative expenses rose by 8.2% to $568.6 million for the three months ended September 30, 2024, compared to $525.5 million in the same period of 2023, with expenses as a percentage of revenues increasing to 17.3% from 17.2%[94]. - Cost of revenues for the nine months ended September 30, 2024, increased by 5.6% to $6,951.4 million, with cost of revenues as a percentage of revenues decreasing to 71.8% from 72.1%[106]. - Selling, general and administrative expenses increased to $1,634.8 million for the nine months ended September 30, 2024, from $1,488.5 million in 2023, reflecting a change of 9.8%[107]. - Amortization of intangibles and other assets rose by 15.8% to $186.0 million for the nine months ended September 30, 2024, compared to $160.6 million in 2023[107]. - Restructuring and other charges increased by 138.9% to $18.0 million for the three months ended September 30, 2024, compared to $7.5 million in the same period of 2023[96]. - Restructuring and other charges increased by 12.3% to $34.6 million for the nine months ended September 30, 2024, from $30.8 million in 2023[110]. Operating Income - Total operating income for the three months ended September 30, 2024, was $254.1 million, a slight increase of 0.7% from $252.3 million in the same period of 2023[102]. - Operating income for the Dx segment was $1,246.8 million, a slight increase of 0.7% from $1,237.5 million in the same period of 2023[121]. - BLS segment operating income increased by 14.2% to $328.2 million for the nine months ended September 30, 2024, compared to $287.2 million in 2023[121]. Cash Flow and Financing - Net cash provided by operating activities from continuing operations was $808.6 million for the nine months ended September 30, 2024, up from $622.7 million in 2023[122]. - Net cash used for investing activities increased to $1,157.2 million in 2024 from $816.2 million in 2023, primarily due to increased business acquisitions[125]. - Net cash provided by financing activities was $1,326.6 million for the nine months ended September 30, 2024, compared to net cash used of $1,112.5 million in 2023[126]. - On September 23, 2024, the Company issued $2,000.0 million in Senior Notes with interest rates of 4.35%, 4.55%, and 4.80%, maturing in 2030, 2032, and 2034 respectively[127]. - As of September 30, 2024, the Company had $1,517.3 million in cash and $1,000.0 million available under its revolving credit facility, which matures in 2026[128]. - The Company authorized a new share repurchase plan for up to $1,000.0 million, with a total outstanding authorization of $1,355.4 million as of September 30, 2024[129]. - For the nine months ended September 30, 2024, the Company paid $183.0 million in common stock dividends and announced a cash dividend of $0.72 per share for Q4 2024, totaling approximately $61.0 million[129]. Foreign Exchange and Interest Rate Management - Approximately 13.6% of the Company's revenues for the nine months ended September 30, 2024, were denominated in foreign currencies, impacting financial results due to exchange rate fluctuations[133]. - A hypothetical 10% change in average exchange rates would have impacted income before income taxes by approximately $20.8 million for the nine months ended September 30, 2024[134]. - The Company had 9 open foreign exchange forward contracts with a total notional value of approximately $382.0 million as of September 30, 2024[135]. - The Company entered into fixed-to-variable interest rate swap agreements for $500.0 million of 2.70% senior notes due 2031 to hedge against interest rate fluctuations[136]. - The Company expects to remain in compliance with all covenants associated with its existing debt obligations for the next twelve months[128]. Acquisitions and Investments - The Company plans to acquire a 15% minority interest in SYNLAB for approximately $155.9 million, expected to close in early 2025[125]. - The AR Facility with PNC Bank allows for purchases of accounts receivable up to $300.0 million, potentially increasing to $700.0 million, with $300.0 million received under this facility during Q3 2024[127].

For the quarter ended September 2024, Labcorp (LH) reported revenue of $3.28 billion, up 7.4% over the same period last year. EPS came in at $3.50, compared to $3.38 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $3.26 billion, representing a surprise of +0.64%. The company delivered an EPS surprise of +0.57%, with the consensus EPS estimate being $3.48.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expec ...

Company Performance - Labcorp reported quarterly earnings of $3.50 per share, exceeding the Zacks Consensus Estimate of $3.48 per share, and up from $3.38 per share a year ago, representing an earnings surprise of 0.57% [1] - The company posted revenues of $3.28 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.64%, and an increase from $3.06 billion year-over-year [1] - Labcorp has consistently surpassed consensus EPS and revenue estimates over the last four quarters [1] Stock Outlook - Labcorp shares have declined approximately 3.3% since the beginning of the year, contrasting with the S&P 500's gain of 21.5% [2] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations and recent changes in these expectations [3] - The current consensus EPS estimate for the upcoming quarter is $3.44 on revenues of $3.3 billion, and for the current fiscal year, it is $14.55 on revenues of $12.96 billion [4] Industry Context - The Medical - Dental Supplies industry, to which Labcorp belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, indicating potential challenges for stock performance [5] - Staar Surgical, another company in the same industry, is expected to report quarterly earnings of $0.19 per share, reflecting a year-over-year decline of 36.7%, with revenues projected at $87.21 million, an increase of 8.6% from the previous year [5]

Revenue and Financial Performance - Revenue for Q3 2024 increased to $3.28 billion, up 7.4% from $3.06 billion in Q3 2023[1][6] - Diagnostics Laboratories segment revenue increased 8.9% to $2.55 billion in Q3 2024, up from $2.34 billion in Q3 2023[10] - Biopharma Laboratory Services segment revenue grew 2.6% to $737.7 million in Q3 2024, compared to $719.1 million in Q3 2023[14] - Revenue for the nine months ended September 30, 2024, was $9,679.5 million, compared to $9,128.3 million for the same period in 2023[26] - Diagnostics Laboratories revenues increased to $2,553.5 million in Q3 2024, up from $2,344.7 million in Q3 2023, representing an 8.9% growth[30] - Biopharma Laboratory Services revenues grew to $737.7 million in Q3 2024, compared to $719.1 million in Q3 2023, a 2.6% increase[30] - Consolidated revenues for Q3 2024 reached $3,282.0 million, up 7.4% from $3,056.8 million in Q3 2023[30] Earnings and Profitability - Adjusted EPS for Q3 2024 was $3.50, compared to $3.38 in Q3 2023[1][7] - Net earnings attributable to Labcorp Holdings Inc. for the nine months ended September 30, 2024, were $602.6 million, compared to $585.1 million for the same period in 2023[26] - Diluted earnings per common share for the nine months ended September 30, 2024, were $7.13, compared to $6.63 for the same period in 2023[26] - Adjusted operating income for Diagnostics Laboratories was $387.4 million in Q3 2024, slightly up from $386.3 million in Q3 2023[30] - Biopharma Laboratory Services adjusted operating income rose to $120.9 million in Q3 2024, an 11.0% increase from $109.0 million in Q3 2023[30] - Consolidated adjusted operating income for Q3 2024 was $441.1 million, compared to $423.9 million in Q3 2023, a 4.1% growth[30] - Adjusted net income for Q3 2024 was $295.7 million, slightly up from $293.7 million in Q3 2023[32] Cash Flow and Financial Position - Free Cash Flow for Q3 2024 was $162 million, down from $171 million in Q3 2023[1][8] - Labcorp's cash balance at the end of Q3 2024 was $1.52 billion, with total debt of $6.75 billion[9] - Net cash provided by operating activities for the nine months ended September 2024 was $808.6 million, compared to $748.1 million in the same period of 2023[29] - Cash and cash equivalents surged to $1,517.3 million in September 2024, up from $536.8 million in December 2023, driven by strong operating cash flows[28][29] - Long-term debt increased to $5,352.1 million in September 2024 from $4,054.7 million in December 2023, primarily due to the issuance of senior notes[28][29] - Retained earnings grew to $8,275.8 million in September 2024 from $7,888.2 million in December 2023, reflecting strong earnings performance[28] - Accounts receivable increased to $2,058.5 million in September 2024 from $1,913.3 million in December 2023, indicating higher revenue generation[28] Guidance and Future Outlook - Updated Full-Year 2024 Revenue guidance range is 6.6% to 7.3%, with Adjusted EPS range of $14.30 to $14.70[1] - Labcorp Enterprise revenue for 2023 was $12.2 billion, with 2024 guidance ranging from 6.6% to 7.3% growth[17] - Diagnostics Laboratories revenue for 2023 was $9.4 billion, with 2024 guidance ranging from 7.2% to 7.8% growth[17] - Biopharma Laboratory Services revenue for 2023 was $2.8 billion, with 2024 guidance ranging from 4.7% to 5.6% growth[17] - Adjusted EPS for 2023 was $13.56, with 2024 guidance ranging from $14.30 to $14.70[17] - Free Cash Flow from continuing operations for 2023 was $0.89 billion, with 2024 guidance ranging from $0.85 to $0.98 billion[17] Acquisitions and Investments - Labcorp announced or completed five acquisitions/agreements, including Ballad Health's outreach lab services and Invitae's assets[3] - Labcorp invested $458.1 million in acquisitions during Q3 2024 and paid $60.5 million in dividends[9] - Acquisition of businesses, net of cash acquired, totaled $751.2 million for the nine months ended September 2024, compared to $516.7 million in the same period of 2023[29] - Capital expenditures for the nine months ended September 2024 were $377.8 million, up from $286.4 million in the same period of 2023[29] Operational and Strategic Developments - Labcorp expanded its collaboration with Ultima Genomics for whole genome sequencing and received FDA authorization for PGDx elio plasma focus Dx[4] - Labcorp supported 84% of new drugs and therapeutic products approved by the FDA in 2023[22] - Labcorp performed over 600 million tests for patients worldwide in 2023[22] Operating Margins - Adjusted operating margin for Diagnostics Laboratories decreased to 15.2% in Q3 2024 from 16.5% in Q3 2023[30] - Biopharma Laboratory Services adjusted operating margin improved to 16.4% in Q3 2024, up from 15.2% in Q3 2023[30] - Consolidated adjusted operating margin declined to 13.4% in Q3 2024 from 13.9% in Q3 2023[30] Dividends and Shareholder Returns - Dividends paid for the nine months ended September 2024 were $183.0 million, slightly lower than $192.9 million in the same period of 2023[29] - Labcorp paid $60.5 million in dividends during Q3 2024[9]

Updates Full-Year GuidanceResults from Continuing Operations for third quarter 2024 versus last year:Revenue: $3.28 billion versus $3.06 billionDiluted EPS: $2.00 versus $2.11Adjusted EPS: $3.50 versus $3.38Free Cash Flow: $162 million versus $171 millionUpdated Full-Year 2024 Guidance:Revenue range of 6.6% to 7.3%; midpoint unchangedAdjusted EPS range of $14.30 to $14.70; midpoint down $0.10, due to the negative impact from weather of approximately $0.15Free Cash Flow of $850 million to $980 millionAnnounc ...

Core Viewpoint - Wall Street analysts anticipate Labcorp (LH) will report quarterly earnings of $3.49 per share, reflecting a year-over-year increase of 3.3%, with revenues expected to reach $3.26 billion, up 6.7% from the previous year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate has been revised 0.8% lower over the last 30 days, indicating a reevaluation of initial estimates by analysts [1] - Analysts forecast 'Revenues- Diagnostics Laboratories' to reach $2.53 billion, representing a 7.9% increase from the year-ago quarter [2] - 'Revenues- Biopharma Laboratory Services' are projected to be $734.73 million, indicating a 2.2% increase from the previous year [2] Group 2: Operating Income Estimates - 'Adjusted Operating Income- Biopharma Laboratory Services' is expected to be $111.44 million, compared to $109 million from the year-ago period [2] - 'Adjusted Operating Income- Diagnostics Laboratories' is projected to be $409.56 million, up from $386.30 million year-over-year [3] Group 3: Stock Performance - Over the past month, Labcorp shares have declined by 2.9%, while the Zacks S&P 500 composite has increased by 4.5% [3] - Labcorp holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the near term [3]

Core Viewpoint - Wall Street anticipates a year-over-year increase in Labcorp's earnings driven by higher revenues, with the actual results being crucial for stock price movement [1] Earnings Expectations - Labcorp is expected to report quarterly earnings of $3.49 per share, reflecting a year-over-year increase of 3.3% [2] - Revenue projections stand at $3.26 billion, indicating a 6.7% increase from the same quarter last year [2] Estimate Revisions - The consensus EPS estimate has been revised down by 0.76% over the last 30 days, indicating a reassessment by analysts [3] Earnings Surprise Prediction - The Zacks Earnings ESP model shows that Labcorp's Most Accurate Estimate is lower than the consensus estimate, resulting in an Earnings ESP of -0.65%, suggesting bearish sentiment among analysts [4][6] - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [5] Historical Performance - In the last reported quarter, Labcorp exceeded expectations by posting earnings of $3.94 per share against an expected $3.78, achieving a surprise of 4.23% [7] - Over the past four quarters, Labcorp has consistently beaten consensus EPS estimates [7] Conclusion - Labcorp does not currently appear to be a strong candidate for an earnings beat based on the Earnings ESP and Zacks Rank, but other factors should also be considered for investment decisions [8]

BURLINGTON, N.C., Oct. 10, 2024 /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, announced today that its Board of Directors has declared a cash dividend of $0.72 per share of common stock. The dividend will be payable on December 13, 2024, to stockholders of record as of the close of business on November 26, 2024. About Labcorp Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, phar ...