Labcorp(LH)2024-10-24 10:58Revenue 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]