Financial Data and Key Metrics Changes - Enterprise revenue reached $3.5 billion, representing a 10% growth year-over-year [6][17] - Diagnostics revenue grew 9% to $2.7 billion, driven by both organic growth and acquisitions [7][21] - Adjusted earnings per share (EPS) increased by 10% to $4.35 [8][19] - Operating cash flow was $621 million, up from $561 million a year ago [20] Business Line Data and Key Metrics Changes - Diagnostics Laboratories revenue was $2.7 billion, an increase of 8.9% year-over-year, with organic growth of 4.5% [21][22] - Biopharma Laboratory Services (BLS) revenue grew 11% to $785 million, with organic revenue growth of 7.8% [23][24] - Early Development in BLS grew 20% or 18% in constant currency, while Central Laboratories grew 8% or 4% in constant currency [7][24] Market Data and Key Metrics Changes - The quarterly book-to-bill ratio was strong at 1.18, with a trailing twelve-month ratio of 1.11 [8][25] - The company ended the quarter with a backlog of $8.7 billion, expecting approximately $2.7 billion to convert into revenue over the next twelve months [25] Company Strategy and Development Direction - The company aims to be the partner of choice for health systems and local laboratories, expanding its presence and strengthening customer relationships [9][10] - Focus on launching innovative tests in specialty areas such as oncology, women's health, and neurology to accelerate growth [12][14] - The company is enhancing customer and employee experiences through technology and operational efficiencies [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable growth and long-term value for shareholders [29] - The company raised its full-year guidance for enterprise revenue, adjusted EPS, and free cash flow, driven by strong business performance and favorable foreign exchange rates [26][28] Other Important Information - The company invested $25 million in acquisitions and partnerships, paid out $60 million in dividends, and repurchased $200 million of stock during the quarter [21] - Total debt was $5.6 billion, with a debt leverage of 2.5x gross debt to trailing twelve months adjusted EBITDA [21] Q&A Session Summary Question: Volume dynamics and growth strategies - Management highlighted that about half of the 9% growth in diagnostics revenue came from organic growth, with strong performance in hospital deals and specialty products driving accelerated growth [30][32] Question: Legislative and regulatory outlook - Management discussed ongoing efforts to address PAMA and the potential impact of legislative changes on the business, indicating that the overall impact is manageable [39][42] Question: Community health deal details - The community health deal is expected to be accretive in the first year and is part of a broader strategy to enhance inorganic growth [51][53] Question: BLS segment performance - Management noted strong growth in both Central Labs and Early Development, with a focus on maintaining momentum and monitoring customer engagement [58][60] Question: Managed care contracting - Management confirmed that unit prices remain relatively flat and expressed confidence in securing reasonable terms for contract renewals [67][68] Question: Invitae deal performance - Management reported confidence in the integration of Invitae, expecting revenue growth of 10% and slight accretion for the full year [73][75] Question: Specialty testing opportunities - Management emphasized the importance of a broad range of tests in specialty areas, indicating a strategic focus on oncology and Alzheimer's disease [94][96]

Core Insights - Labcorp Holdings (LH) reported quarterly earnings of $4.35 per share, exceeding the Zacks Consensus Estimate of $4.14 per share, and up from $3.94 per share a year ago, representing an earnings surprise of +5.07% [1] - The company achieved revenues of $3.53 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.14%, and an increase from $3.22 billion year-over-year [2] - Labcorp has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The future performance of Labcorp's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $4.07 on revenues of $3.53 billion, while for the current fiscal year, the estimate is $16.05 on revenues of $13.91 billion [7] Industry Context - The Medical Services industry, to which Labcorp belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, IceCure Medical Ltd. (ICCM), is expected to report a quarterly loss of $0.06 per share, with revenues projected to decline by 20.8% year-over-year [9]

Financial Performance - Q2 2025 - Total Adjusted EBITDA for Q2 2025 was $627.8 million[6], compared to $574.6 million in Q2 2024[6], an increase - The company's Q2 2025 revenue, as reported, reached $3.5273 billion[21], a 9.5% increase year-over-year from $3.2209 billion in Q2 2024[21] - Adjusted earnings per share for Q2 2025 was $4.35[23], compared to $3.94 in Q2 2024[23] Revenue Breakdown and Growth - Enterprise revenue, as reported, for Q2 2025 was $3.527 billion[8], reflecting a 9.5% year-over-year growth[8] - Diagnostics Laboratories revenue, as reported, for Q2 2025 was $2.749 billion[8], showing an 8.9% year-over-year growth[8] - Biopharma Laboratory Services revenue, as reported, for Q2 2025 was $785 million[8], a significant 11% increase year-over-year[8] Outlook for 2025 - The company projects full-year 2025 revenue for Labcorp Enterprise to be between $13.98 billion and $14.13 billion[18], representing a 7.5% to 8.6% increase versus 2024 results[18] - The company anticipates adjusted EPS for 2025 to be in the range of $16.05 to $16.50[18], a 10.1% to 13.2% increase compared to 2024[18] Biopharma Laboratory Services Metrics - The Trailing Twelve Month (TTM) Net Orders ending June 30, 2025, for Biopharma Laboratory Services reached $3.34 billion[17], with a Net Book-to-Bill ratio of 1.11x[17] - As of June 30, 2025, the backlog for Biopharma Laboratory Services was $8.71 billion[17], with an estimated $2.71 billion expected to convert to revenue in the next twelve months[17]

Financial Performance - Labcorp reported Q2 2025 revenue of $3.53 billion, a 9.5% increase from $3.22 billion in Q2 2024[4] - Diluted EPS for Q2 2025 was $2.84, up from $2.43 in Q2 2024, while adjusted EPS increased to $4.35 from $3.94[4] - Operating income increased to $394.5 million for the three months ended June 30, 2025, compared to $294.8 million in the prior year, reflecting a 33.8% growth[31] - Net earnings attributable to Labcorp Holdings Inc. were $237.9 million, a 15.5% increase from $205.3 million in the same quarter of 2024[31] - Basic earnings per share rose to $2.85, up from $2.44 in the same quarter last year, marking a 16.8% increase[31] - Adjusted operating income for the same period was $531.6 million, compared to $479.9 million in 2024, reflecting an increase of 10.8%[41] - Adjusted net income for the six months ended June 30, 2025, was $688.5 million, compared to $644.2 million in 2024, an increase of 6.9%[41] - The company’s adjusted net income per share for the three months ended June 30, 2025, was $4.35, up from $3.94 in 2024[41] Guidance and Future Outlook - The company raised its full-year revenue guidance to a range of 7.5% to 8.6%, with the midpoint raised by 70 basis points[4] - Adjusted EPS guidance was updated to a range of $16.05 to $16.50, with the midpoint raised by $0.23[4] - Free cash flow guidance was set at $1.13 billion to $1.28 billion, with the midpoint raised by $25 million[4] - Labcorp's guidance for 2025 includes expectations for continued growth, although specific figures were not disclosed in the provided content[26] - The company is focused on future business strategies, including potential acquisitions and partnerships to enhance growth opportunities[26] Operational Highlights - Operating cash flow for Q2 2025 was $620.6 million, compared to $561.1 million in Q2 2024[11] - The company performed over 700 million tests annually, supporting 75% of new drugs approved by the FDA in 2024[25] - Net cash provided by operating activities for the six months ended June 30, 2025, was $639.1 million, compared to $531.3 million in 2024, marking a 20.3% increase[38] - The company reported a net increase in cash and cash equivalents of $277.9 million for the three months ended June 30, 2025[38] Segment Performance - Diagnostics Laboratories segment revenues reached $2,748.8 million, a 8.9% increase from $2,524.9 million in 2024[38] - Biopharma Laboratory Services segment revenues grew to $784.8 million, up 11% from $707.0 million in the prior year[38] Acquisitions and Partnerships - The company announced the acquisition of select assets from Incyte Diagnostics and BioReference Health, furthering its market expansion[7] - Labcorp expanded partnerships with hospitals and health systems, enhancing access to comprehensive testing services[4] Product Development - Labcorp launched new tests in oncology, including Labcorp® Plasma Detect™ and PGDx elio® plasma focus™ Dx, enhancing its product offerings[7] Balance Sheet and Capital Expenditures - Labcorp's total debt at the end of the quarter was $5.58 billion, with cash and cash equivalents of $0.65 billion[12] - Total assets decreased to $18,059.9 million as of June 30, 2025, down from $18,379.0 million at the end of 2024[33] - Current liabilities decreased to $2,716.8 million from $3,330.2 million at the end of 2024, indicating improved liquidity[33] - Capital expenditures for the three months ended June 30, 2025, were $77.9 million, down from $128.2 million in the same period of 2024[38]

Core Insights - Labcorp reported strong second-quarter results for 2025, achieving double-digit topline growth and margin expansion across both segments, leading to an increase in full-year guidance [2][3][4]. Financial Performance - Total revenue for Q2 2025 was $3.53 billion, a 9.5% increase from $3.22 billion in Q2 2024 [5][7]. - Diluted EPS rose to $2.84 from $2.43 year-over-year, while adjusted EPS increased to $4.35 from $3.94 [7][9]. - Operating income for Q2 2025 was $394.5 million, compared to $294.8 million in Q2 2024, reflecting a margin of 11.2% [6][30]. Guidance Update - Labcorp raised its 2025 guidance for enterprise revenue to a range of 7.5% to 8.6%, with the midpoint raised by 70 basis points [4][19]. - Adjusted EPS guidance was updated to a range of $16.05 to $16.50, with the midpoint raised by $0.23 [19][20]. - Free cash flow guidance was adjusted to a range of $1.13 billion to $1.28 billion, with the midpoint raised by $25 million [19][20]. Strategic Initiatives - The company expanded partnerships with hospitals and health systems, enhancing access to comprehensive testing and laboratory services [7][8]. - Labcorp introduced several innovative tests in high-growth areas, including oncology and Alzheimer's disease diagnostics [8][26]. - The company announced agreements to acquire select assets from Incyte Diagnostics and BioReference Health, further strengthening its market position [8][19]. Capital Allocation - Labcorp declared a quarterly cash dividend of $0.72 per share, payable on September 11, 2025 [4]. - The company repurchased $200 million of common stock during the quarter [4][15]. - As of June 30, 2025, Labcorp's cash and cash equivalents stood at $0.65 billion, with total debt at $5.58 billion [15][32].

Core Viewpoint - Labcorp Holdings (LH) is expected to report quarterly earnings of $4.14 per share, reflecting a 5.1% increase year-over-year, with revenues projected at $3.49 billion, an 8.3% increase from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised down by 0.1% in the last 30 days, indicating a reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3]. Revenue Projections - Analysts estimate 'Revenues- Biopharma Laboratory Services' at $743.20 million, a 5.1% increase from the prior-year quarter [5]. - The average estimate for 'Revenues- Diagnostics Laboratories' is $2.74 billion, reflecting an 8.7% increase year-over-year [5]. Operating Income Estimates - 'Adjusted Operating Income- Biopharma Laboratory Services' is projected to reach $117.62 million, up from $107.40 million in the same quarter last year [6]. - 'Adjusted Operating Income- Diagnostics Laboratories' is expected to be $466.41 million, compared to $441.50 million a year ago [6]. Stock Performance - Labcorp shares have returned -6.9% over the past month, contrasting with the Zacks S&P 500 composite's +5.4% change [6]. - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [6].

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]

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 ...

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 ...

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].