Labcorp(LH)

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Labcorp Q2 Earnings Preview: Diagnostics Strength in Focus
ZACKS· 2025-07-21 13:31
Core Insights - Labcorp Holdings Inc. is set to report its second-quarter 2025 results on July 24, with adjusted earnings of $3.84 per share in the last quarter, exceeding estimates by 2.95% [1] - The company has consistently surpassed earnings estimates over the past four quarters, with an average surprise of 2.31% [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for Labcorp's revenues in Q2 2025 is $3.49 billion, reflecting an 8.3% increase from the previous year [2][8] - EPS is projected to rise by 5.1% to $4.14 [2][8] - Earnings estimates have remained stable at $4.14 per share over the past 30 days [3] Segment Performance Diagnostics Laboratories (Dx) - The Dx segment is expected to maintain strong momentum, driven by organic growth and acquisitions, with an estimated 8.7% year-over-year revenue increase [4][9] - Collaborations with hospitals and health systems, including partnerships with Graves Gilbert Clinic and the acquisition of North Mississippi Health Services, are anticipated to enhance growth [4][5] - New diagnostic capabilities, including a blood-based biomarker test for Alzheimer's and expanded oncology testing, are likely to contribute to revenue growth [6][7][8] Biopharma Laboratory Services (BLS) - The BLS segment is projected to see a 5.1% year-over-year revenue improvement, benefiting from the strength of the Central Laboratories business [10][11] - The uptake of Labcorp Diagnostics Assistant and contributions from the Early Development unit are expected to support revenue growth [10] Operational Efficiency - Both segments are anticipated to show improved margins in Q2 2025, contributing to the overall profit margin of the company [12] - The synergies from the Launchpad initiative are likely to aid in cost management, with adjusted operating income expected to increase by 5.4% for the Dx business and 10.3% for the BLS segment [12]
Will Labcorp (LH) Beat Estimates Again in Its Next Earnings Report?
ZACKS· 2025-07-18 17:11
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Labcorp Holdings (LH) , which belongs to the Zacks Medical Services industry, could be a great candidate to consider.This medical laboratory operator has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 2.21%.For the last reported quarter, Labcorp c ...
Labcorp Holdings (LH) Earnings Expected to Grow: Should You Buy?
ZACKS· 2025-07-17 15:01
Wall Street expects a year-over-year increase in earnings on higher revenues when Labcorp Holdings (LH) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 24. On ...
What Makes Labcorp (LH) a New Buy Stock
ZACKS· 2025-07-07 17:01
Core Viewpoint - Labcorp Holdings (LH) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Labcorp's Earnings Outlook - For the fiscal year ending December 2025, Labcorp is expected to earn $16.05 per share, with a 0.3% increase in the Zacks Consensus Estimate over the past three months [8]. - The upgrade reflects an improvement in Labcorp's underlying business, which is likely to drive the stock price higher as investors respond positively to this trend [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Labcorp's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9][10].
Labcorp Upgraded To A Buy As Portfolio Grows And Leverage Stays Low
Seeking Alpha· 2025-06-30 10:58
Albert Anthony is the pen name of a Croatian-American business author who is a media contributor on investor platform Seeking Alpha, where he has over +1K followers, & also writes for platforms like Investing dot com and is launching a book on Amazon in 2025 called Financial Markets: The Next Generation. Calling himself part of the new generation of analysts in the financial markets, he comes from a non-traditional financial background having been an analyst in the IT sector for several Fortune 500 companie ...
Labcorp to Announce Second Quarter Financial Results on July 24, 2025
Prnewswire· 2025-06-26 20:10
Financial Results Announcement - Labcorp Holdings Inc. will release its financial results for the second quarter of 2025 before the market opens on July 24, 2025 [1] - A conference call and webcast will be held at 9 a.m. ET on the same day to discuss the results [1] Webcast Details - The call will be available via live webcast on the Labcorp Investor Relations website, with registration required for dial-in access [2] - Participants are encouraged to join 10 minutes early, but can register and join at any time during the call [2] Replay Information - A replay of the webcast will be accessible approximately two hours after the live event and will remain available until July 11, 2026 [3] Company Overview - Labcorp is a global leader in laboratory services, aiding healthcare professionals and researchers in decision-making [4] - The company employs nearly 70,000 individuals and operates in approximately 100 countries, supporting over 75% of new drugs approved by the FDA in 2024 [4] - Labcorp conducts more than 700 million tests annually for patients worldwide [4]
Labcorp Stock Climbs 25.6% This Year: What's Driving the Surge?
ZACKS· 2025-06-18 13:31
Core Insights - Labcorp (LH) shares have increased by 25.6% over the past year, outperforming the industry's decline of 16.2% and the S&P 500's gain of 9.1% [1][9] Company Strategy and Growth - Labcorp is focusing on major growth opportunities that are expected to grow faster than other therapeutic areas, supported by a solid pipeline of potential acquisitions [2] - The company is expanding its capabilities in oncology, women's health, autoimmune diseases, and neurology through strategic partnerships and acquisitions [4] - Labcorp has enhanced its testing capabilities for neurodegenerative diseases and launched new solutions in precision oncology, indicating a strong commitment to innovation [5][6] Financial Performance - As of March-end, Labcorp reported cash and cash equivalents of $369 million with zero short-term debt, and a dividend payout ratio of 40.4% after distributing $62 million in dividends [12] - The Zacks Consensus Estimate projects Labcorp's earnings per share (EPS) to increase by 10.2% in 2025 and 9.5% in 2026, with revenues expected to grow by 6.9% to $13.90 billion in 2025 [14] Operational Efficiency - The LaunchPad initiative achieved annual savings of $100-$125 million in 2024, focusing on margin expansion through various operational optimizations [11]
Predictive Oncology Develops Functional 3D Organoid Models Exclusively for Labcorp
Globenewswire· 2025-06-12 12:30
Core Insights - Predictive Oncology Inc. has developed 3D organoid models for Labcorp to enhance drug discovery and preclinical analysis of cancer therapies [1][2][3] - The new models include human and rat liver toxicity models that simulate the liver microenvironment for evaluating drug metabolism and toxicity [2][3] - These organoid models aim to predict in vivo drug clearance, transport, and hepatotoxicity, providing species-specific data that captures hepatic cellular heterogeneity [3][4] Company Developments - The 3D organoid models complement Predictive Oncology's existing AI-driven 2D platform and 3D spheroids, which utilize a biobank of over 150,000 frozen tumor samples [3][6] - The company’s AI platform, PEDAL, predicts with 92% accuracy whether a tumor sample will respond to specific drug compounds, aiding in informed drug selection [6] Industry Trends - The use of organoid-based platforms is seen as a key driver in transforming healthcare, accelerating drug development, and reducing reliance on animal models [4] - There is a growing investment in personalized medicine and biotechnology, with organoids offering cost-effective and high-fidelity alternatives to traditional research methods [4]
Should You Continue to Hold Labcorp Stock in Your Portfolio?
ZACKS· 2025-06-04 13:35
Core Insights - Labcorp Holdings Inc. is focusing on key growth areas such as oncology, women's health, autoimmune disease, and neurology, which are expected to drive growth in upcoming quarters [1][3] - The company has a strong balance sheet and a steady pipeline of potential deals that support its financial strategy and enhance organic growth [1][10] - Despite positive growth prospects, macroeconomic volatilities and fierce competition may pose challenges [1][12] Financial Performance - Labcorp's stock has risen 26.5% over the past year, significantly outperforming the industry, which fell by 2.6%, and the S&P 500, which grew by 10.8% [2] - The company has a market capitalization of $20.75 billion and an earnings yield of 6.5%, compared to the industry's 5.9% [2] - Labcorp delivered an average earnings surprise of 2.3% over the trailing four quarters [2] Growth Strategies - The company is enhancing its capabilities in neurodegenerative disease testing with new blood-based biomarkers for Alzheimer's and other neurological conditions [3][4] - In oncology, Labcorp has expanded its offerings with Plasma Detect and received FDA authorization for the PGDx elio plasma focus Dx [4] - Strategic acquisitions, including assets from BioReference Health and North Mississippi Health Services, are aimed at reinforcing Labcorp's leadership in oncology [5][6] Financial Health - Labcorp ended Q1 2025 with cash and cash equivalents of $369 million and no short-term debt, while long-term debt was $5.64 billion [10] - The company returned capital to shareholders through a $62 million dividend payout in Q1, with a dividend payout ratio of 40.4% [11] Market Challenges - Macroeconomic conditions, including inflation and geopolitical tensions, may reduce demand for diagnostic testing and impact profitability [12] - The commercial laboratory sector is highly competitive, with pressures on pricing and service quality affecting Labcorp's market position [13] Future Outlook - The Zacks Consensus Estimate for Labcorp's 2025 earnings is $16.05, with projected revenues of $13.90 billion, indicating a 6.9% improvement from 2024 [14]
LH Stock Rises Following the Expansion of Precision Oncology Portfolio
ZACKS· 2025-06-02 15:20
Core Insights - Labcorp (LH) has expanded its precision oncology portfolio with new test offerings for solid tumors and hematologic malignancies, along with enhanced biopharma solutions aimed at accelerating clinical trials and companion diagnostic development [1][8]. Company Developments - Following the announcement, Labcorp shares increased by 0.9%, closing at $248.97, with a focus on oncology expected to drive growth opportunities, projected to grow up to 3x faster than other therapeutic areas [2]. - Labcorp's market capitalization stands at $20.84 billion, with earnings expected to grow by 10.2% and revenues by 6.9% in 2025, based on the Zacks Consensus Estimate [3]. - The company introduced new NGS panels for myeloid, lymphoid, and pan-heme indications, enhancing genomic coverage and actionable insights for hematologic malignancies [4]. - The launch of the Rapid AML Panel aims to improve testing for acute myeloid leukemia, while the OmniSeq INSIGHT test will now include homologous recombination deficiency (HRD) testing for ovarian cancer patients [5]. - Labcorp has launched Labcorp Plasma Focus, a solid tumor liquid biopsy test, and an enhanced digital pathology platform to support companion diagnostic development [6][9]. Industry Prospects - The global precision oncology market is projected to exceed $312.33 billion by 2034, growing at a compound annual growth rate of 10% from 2024 to 2034, driven by rising cancer prevalence and advancements in technologies like next-generation sequencing [10]. - Labcorp's recent acquisition of select assets from Incyte Diagnostics' clinical testing business includes several same-day testing labs and key anatomic pathology facilities [11]. Stock Performance - Over the past year, Labcorp shares have increased by 27.7%, significantly outperforming the industry, which saw a decline of 2.3% [12].