Laboratory Corp. of America HoldingsLH is a leading independent clinical laboratory, whose offerings include a broad range of routine tests (including blood chemistry analysis, urinalyses, blood cell count, thyroid test, Pap tests and HIV tests) as well as specialty testing operations or esoteric testing.
Currently, LabCorp has a Zacks Rank #3 (Hold) but that could change following its second quarter 2018 earnings report which has just released. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key details from the just-released announcement below:
Earnings: The Zacks Consensus Estimate is pegged at $2.92 per share. LabCorp's adjusted earnings per share of $2.98 beat the consensus mark and is up 22.6% on a year-over-year basis.
Sales: LabCorp posted net revenues of $2.87 billion, which has also beat the Zacks Consensus Estimate of $2.85 billion. The figure is up 13.4% on year-over-year basis.
Key Stats: Revenues from LabCorp Diagnostics segment increased 5.4% year over year to $1.81 billion in the second quarter.
Revenues from Covance Drug Development segment increased 30.6% to $1.05 billion, courtesy of solid organic growth and the benefit from foreign currency translation.
Laboratory Corporation of America Holdings Price and Consensus
Major Factors: Management seemed to be upbeat about LabCorp's impressive second-quarter results. Notably, the Diagnostics and Drug Development businesses each delivered excellent performance in the second quarter through a combination of strategic acquisitions, organic initiatives, and margin improvement.
The company has also updated its previously-issued 2018 guidance.
For 2018, the company expects a revenue growth of 10.5% to 11.5%, which includes the benefit of approximately 50 basis points of foreign currency translation.
Adjusted earnings per share is expected between $11.35 to $11.65, reflecting an increase of approximately 22.7% to 25.9%.
Stock Price: Following the earnings release, share prices did not show any movement in the pre-market trading session.
Check back later for our full write up on this LabCorp earnings report later!
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