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LabCorp quarterly revenue beats on higher demand for COVID-19 testing

Laboratory Corporation of America Holdings on Tuesday reported better-than-expected sales for the second quarter, as higher demand for its COVID-19 tests more than offset the decline in other routine and specialty diagnostic testing.

(Adds details on the quarter, estimates, shares)

July 28 (Reuters) - Laboratory Corporation of America Holdings on Tuesday reported better-than-expected sales for the second quarter, as higher demand for its COVID-19 tests more than offset the decline in other routine and specialty diagnostic testing.

The Burlington, North Carolina-based diagnostic testing company's shares were up 3.4% at $208 premarket, in very light volume.

The health crisis, which has so far infected more than 4 million Americans, has forced patients to delay non-essential medical procedures and tests associated with them as well as routine tests, which led to a decline in testing volumes for commercial labs.

LabCorp's diagnostics segment revenue fell 3.9% to $1.69 billion in the quarter. This was, however, offset by strong demand for its COVID-19 tests.

The company said it was currently processing about 180,000 COVID-19 tests per day.

It also reported a $55.9 million government stimulus income related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act in the reported quarter.

Company reported net revenue of $2.77 billion, beating market estimates of $2.50 billion, as per Refinitiv data. (Reporting By Mrinalika Roy in Bengaluru; Editing by Shinjini Ganguli) Keywords: LABORATORY CORP RESULTS/ (UPDATE 1)

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