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].

Core Insights - Labcorp Holdings Inc. is focusing on specialty testing areas such as oncology, women's health, autoimmune disease, and neurology to drive growth in upcoming quarters [1] - The company has a solid pipeline of potential acquisitions that align with its financial strategy and will enhance organic growth [1] - Macroeconomic issues and currency fluctuations pose challenges to Labcorp's operations [1] Financial Performance - Labcorp's stock has increased by 4.9% over the past year, contrasting with a 9.2% decline in the industry and a 1.4% decline in the S&P 500 [2] - The company has a market capitalization of $18.70 billion and an earnings yield of 7.2%, outperforming the industry's 6.3% yield [2] - Labcorp delivered an average earnings surprise of 3.2% over the trailing four quarters [2] Growth Drivers - In 2024, Labcorp enhanced its testing capabilities for neurodegenerative diseases with two new blood-based biomarkers [3] - The company expanded its oncology offerings with the Plasma Detect assay, currently in 12 global trials [3] - The Precision Oncology portfolio has seen new strategic service offerings, including FDA-approved diagnostics for gastric cancer and multiple sclerosis monitoring [4] Strategic Acquisitions - Labcorp invested $839 million in acquisitions in 2024 to strengthen its partnerships with hospitals and laboratories [5] - The company acquired assets from Lab Works and Ballad Health to enhance testing services in Alabama and the Appalachian region [5] - In December, Labcorp agreed to acquire assets from MAWD Pathology Group and introduced a new H5 bird flu molecular test in collaboration with the CDC [6] Business Segment Performance - The Biopharma Laboratory Services segment is a key growth driver, with central laboratories showing a 10% revenue increase in Q4 2024 [10] - The Early Development business also demonstrated a 12% year-over-year revenue growth [10] - Labcorp expanded its global molecular bioanalytical capacity with new facilities in Indiana and China [11] Challenges - Labcorp's operations are sensitive to macroeconomic conditions, which have reduced demand for diagnostic testing and drug development services [12] - The company faces currency headwinds due to its significant international exposure, with expected adverse impacts on revenues in 2025 [13] Earnings Estimates - The Zacks Consensus Estimate for Labcorp's 2025 earnings per share is $16.01, with revenues projected at $13.93 billion, indicating a 7.1% improvement from 2024 [14]

Core Insights - Labcorp Holdings, Inc. has launched an FDA-approved HPV self-collection solution and a vaginal swab self-collect option for STI testing, aimed at improving cervical cancer screening rates and empowering individuals in managing their health [1][7]. Company Developments - The new self-collection solutions require a physician's order and can be completed privately at healthcare settings or Labcorp's 2,200 Patient Service Centers nationwide [2]. - Following the announcement, Labcorp's stock experienced a slight decline of 0.04%, closing at $232.65, but the company is addressing barriers to health screenings, which may positively influence market sentiment [3]. - Labcorp has a market capitalization of $19.48 billion, with earnings expected to grow by 9.9% and revenues by 7.1% according to the Zacks Consensus Estimate [4]. Industry Context - The U.S. has over 13,000 annual cervical cancer diagnoses, with approximately 4,000 fatalities, highlighting the importance of HPV testing for early intervention [5]. - The FDA approved self-collection tests for cervical cancer screenings in 2024, providing a less invasive alternative to traditional methods, which may improve screening rates [6]. - The global self-testing market was valued at $11.39 billion in 2024 and is projected to grow at a compound annual growth rate of 8.4% through 2030, driven by personalized healthcare and technological advancements [8]. Strategic Moves - Labcorp announced an agreement to acquire select assets of BioReference Health, focusing on oncology-related clinical testing services across the U.S. [10]. - In the past six months, Labcorp shares have increased by 8.2%, outperforming the industry average rise of 4.8% [11].

Core Viewpoint - Labcorp has launched a new blood-based biomarker test, the pTau-217/Beta Amyloid 42 Ratio, which aids in the diagnosis of Alzheimer's disease and meets performance criteria for confirming amyloid pathology consistent with the disease [1][2]. Group 1: Test Features and Benefits - The pTau-217/Beta Amyloid 42 Ratio test provides results comparable to positron emission tomography (PET) imaging and cerebrospinal fluid (CSF) testing, supporting neurologists and dementia specialists in diagnosing Alzheimer's disease [2]. - This test has a sensitivity and specificity of 95%, which is substantially equivalent to the performance of amyloid PET imaging and CSF testing [8]. - Blood draws for the test can be conducted in a physician's office or at any of Labcorp's over 2,000 Patient Service Centers (PSCs) nationwide, making it more accessible [8]. Group 2: Market Context and Impact - An estimated 6.9 million Americans are currently living with Alzheimer's disease, a figure projected to nearly double by 2050, highlighting the growing need for effective diagnostic tools [3]. - The average time from the onset of symptoms to diagnosis is approximately 2.8 years, indicating a significant delay in the current diagnostic process [3]. - The introduction of this test aims to reduce the time and anxiety associated with diagnosing Alzheimer's disease, enabling more timely and informed treatment decisions for patients and their families [4]. Group 3: Company Overview - Labcorp is a global leader in laboratory services, providing insights and advancing science to improve health through diagnostics and drug development capabilities [7]. - The company employs nearly 70,000 individuals and serves clients in approximately 100 countries, supporting over 75% of new drugs approved by the FDA in 2024 [7].