Labcorp Positioned For Gradual Upside With Resilient Margins And Dividend Support

Core Insights - Laboratory Corp reported third-quarter 2025 adjusted earnings per share of $4.18, an increase from $3.50 a year ago, surpassing the consensus of $4.18 [1] - Sales rose 8.6% year-over-year to $3.56 billion, also beating the consensus of $3.56 billion [1] - The sales increase was attributed to organic revenue growth of 6.2%, acquisitions net of divestitures at 1.7%, and foreign currency translation contributing 0.7% [1] Financial Performance - Adjusted operating income for the quarter was $396.6 million, representing 11.1% of revenue [1] - The company revised its fiscal year 2025 adjusted earnings guidance from $16.05-$16.50 to $16.15-$16.50, compared to the consensus of $16.32 [3] - LabCorp lowered its 2025 sales guidance from $14.08 billion-$14.23 billion to $13.97 billion-$14.05 billion, against the consensus of $14.01 billion [3] Growth Projections - LabCorp forecasts 2025 sales growth of 7.4%-8%, down from prior guidance of 7.5%-8.6% [3] - The guidance includes Diagnostics Laboratories sales growth of 7.2%-7.8% and Biopharma Laboratory Services sales growth of 5.7%-7.1% [4] Market Position - Analyst Andrew F. Brackmann from William Blair reiterated an Outperform rating, noting LabCorp's steady organic growth in diagnostics and a solid M&A pipeline [4] - The company is positioned for long-term earnings growth, supported by a steady dividend and resilient valuation multiple [4] Stock Performance - Laboratory Corp's stock is down 5.23% at $261.25 as of the last check on Tuesday [5]