Labcorp (LH) Beats Q1 Earnings Estimates

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]