We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
LabCorp (LH) to Report Q1 Earnings: What's in the Cards?
Read MoreHide Full Article
Laboratory Corporation of America Holdings (LH - Free Report) , also known as LabCorp, is slated to report first-quarter 2022 results on Apr 28, before market open.
In the last reported quarter, the company’s adjusted earnings of $6.77 exceeded the Zacks Consensus Estimate by 14.8%. The company beat estimates in each of the trailing four quarters, the average surprise being 21.63%.
Factors at Play
LabCorp has been registering an ongoing sales rebound in the base business for both Diagnostics and Drug Development segments. However, as the effects of the pandemic subside, we expect the demand for COVID-19 testing services to gradually decline, impacting the first-quarter sales performance.
In the last-reported fourth quarter of 2021, the company experienced higher adjusted operating income and improved margins within the base business, given organic growth and LaunchPad savings. Per the fourth-quarter earnings call, the company has implemented a new LaunchPad business process improvement initiative, which is anticipated to deliver $350 million in savings over the next three years. The new initiative is expected to have contributed to the company’s first-quarter margin.
Covance Drug Development is likely to have benefitted from continued growth in the organic base business and a strong backlog of $15 billion at the end of the fourth quarter.
In terms of pandemic response, the company is constantly leveraging its comprehensive capabilities to expand access to COVID-19 testing, detect and monitor new variants, and advance vaccine and therapy development to prepare for future scenarios. In March 2022, LabCorp and Walgreens announced the nationwide availability of Pixel by Labcorp COVID-19 at-home collection kit to allow greater access to reliable, convenient testing services within communities. These initiatives are likely to have made significant contributions to the company’s first-quarter performance.
Laboratory Corporation of America Holdings Price and EPS Surprise
LabCorp’s ongoing efforts to strengthen Ovia Health's innovative platform are anticipated to have positively impacted its women’s health business in the to-be-reported quarter. The acquisition of Ovia Health has reinforced LabCorp’s position as an important source of information for women's health. The innovative platform offers services like family planning, and pregnancy and parenting support.
LabCorp’s acquisition of Personal Genome Diagnostics (PGDx) is likely to have positively impacted the oncology business. The addition of PGDx and its technology complements and accelerates LabCorp’s existing liquid biopsy capabilities and expands its leading oncology portfolio of next-generation sequencing (NGS)-based genomic profiling capabilities. Other notable offerings from the oncology test menu, including the clonoSEQ and OmniSeq INSIGHT tests, are likely to have enhanced sales performance within the oncology business.
In February 2022, LabCorp entered into a strategic agreement with Ascension-- one of the largest health systems in the United States. The agreement enables Ascension to utilize LabCorp’s scientific expertise, technology and scale in therapeutic areas like oncology, neurology and women’s health and is likely to drive positive outcomes for the Drug Development segment.
The Zacks Consensus Estimate for Covance Drug Development segment’s first-quarter revenues is pegged at $1.51 billion, indicating a rise of 4.9% from the prior-year quarter’s figure.
Within LabCorp Diagnostics, base business organic volume is anticipated to have continued its rally, led by consistent growth in esoteric and routine procedures. However, a slowdown in COVID-19 testing is likely to have hampered sales performance within the segment.
In January 2022, the company began offering the Enhanced Liver Fibrosis test, developed by Siemens Healthineers. This physician-ordered blood test extends LabCorp’s testing options for nonalcoholic fatty liver disease. In February 2022, the company launched the Labcorp OnDemand digital health platform. The OnDemand platform is an intuitive experience that provides individuals with easy access to LabCorp’s leading diagnostic tests online. These developments are expected to have positively contributed to the company’s Diagnostics arm in the first quarter.
The Zacks Consensus Estimate for LabCorp Diagnostics’ first-quarter revenues is pegged at $2.52 billion, significantly lower than the year-ago quarter’s reported figure of $2.76 billion.
Key Q1 Estimates
The Zacks Consensus Estimate for first-quarter earnings of $5.88 per share implies a 33.1% plunge from the year-ago reported figure. The consensus estimate for revenues is pegged at $4.04 billion, suggesting a 2.9% fall from the prior-year reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here, as you can see:
Earnings ESP: The company has an Earnings ESP of -0.22%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Alcon’s long-term earnings growth rate is estimated at 14.7%. ALC’s earnings yield of 3.01% compares with the industry’s (6.48%).
Lucira Health, Inc. has an Earnings ESP of +485.72% and a Zacks Rank of #2. Lucira Health is slated to report first-quarter 2022 results on May 12.
Lucira Health’s long-term earnings growth rate is estimated at 40.2%. LHDX’s earnings yield of 27.92% compares favorably with the industry’s 0.42%.
Meridian Bioscience, Inc. has an Earnings ESP of +26.32% and a Zacks Rank of #2. Meridian Bioscience is scheduled to release second-quarter fiscal 2022 results on May 6.
Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s earnings yield of 5.05% compares favorably with the industry’s 0.42%.
Image: Bigstock
LabCorp (LH) to Report Q1 Earnings: What's in the Cards?
Laboratory Corporation of America Holdings (LH - Free Report) , also known as LabCorp, is slated to report first-quarter 2022 results on Apr 28, before market open.
In the last reported quarter, the company’s adjusted earnings of $6.77 exceeded the Zacks Consensus Estimate by 14.8%. The company beat estimates in each of the trailing four quarters, the average surprise being 21.63%.
Factors at Play
LabCorp has been registering an ongoing sales rebound in the base business for both Diagnostics and Drug Development segments. However, as the effects of the pandemic subside, we expect the demand for COVID-19 testing services to gradually decline, impacting the first-quarter sales performance.
In the last-reported fourth quarter of 2021, the company experienced higher adjusted operating income and improved margins within the base business, given organic growth and LaunchPad savings. Per the fourth-quarter earnings call, the company has implemented a new LaunchPad business process improvement initiative, which is anticipated to deliver $350 million in savings over the next three years. The new initiative is expected to have contributed to the company’s first-quarter margin.
Covance Drug Development is likely to have benefitted from continued growth in the organic base business and a strong backlog of $15 billion at the end of the fourth quarter.
In terms of pandemic response, the company is constantly leveraging its comprehensive capabilities to expand access to COVID-19 testing, detect and monitor new variants, and advance vaccine and therapy development to prepare for future scenarios. In March 2022, LabCorp and Walgreens announced the nationwide availability of Pixel by Labcorp COVID-19 at-home collection kit to allow greater access to reliable, convenient testing services within communities. These initiatives are likely to have made significant contributions to the company’s first-quarter performance.
Laboratory Corporation of America Holdings Price and EPS Surprise
Laboratory Corporation of America Holdings price-eps-surprise | Laboratory Corporation of America Holdings Quote
LabCorp’s ongoing efforts to strengthen Ovia Health's innovative platform are anticipated to have positively impacted its women’s health business in the to-be-reported quarter. The acquisition of Ovia Health has reinforced LabCorp’s position as an important source of information for women's health. The innovative platform offers services like family planning, and pregnancy and parenting support.
LabCorp’s acquisition of Personal Genome Diagnostics (PGDx) is likely to have positively impacted the oncology business. The addition of PGDx and its technology complements and accelerates LabCorp’s existing liquid biopsy capabilities and expands its leading oncology portfolio of next-generation sequencing (NGS)-based genomic profiling capabilities. Other notable offerings from the oncology test menu, including the clonoSEQ and OmniSeq INSIGHT tests, are likely to have enhanced sales performance within the oncology business.
In February 2022, LabCorp entered into a strategic agreement with Ascension-- one of the largest health systems in the United States. The agreement enables Ascension to utilize LabCorp’s scientific expertise, technology and scale in therapeutic areas like oncology, neurology and women’s health and is likely to drive positive outcomes for the Drug Development segment.
The Zacks Consensus Estimate for Covance Drug Development segment’s first-quarter revenues is pegged at $1.51 billion, indicating a rise of 4.9% from the prior-year quarter’s figure.
Within LabCorp Diagnostics, base business organic volume is anticipated to have continued its rally, led by consistent growth in esoteric and routine procedures. However, a slowdown in COVID-19 testing is likely to have hampered sales performance within the segment.
In January 2022, the company began offering the Enhanced Liver Fibrosis test, developed by Siemens Healthineers. This physician-ordered blood test extends LabCorp’s testing options for nonalcoholic fatty liver disease. In February 2022, the company launched the Labcorp OnDemand digital health platform. The OnDemand platform is an intuitive experience that provides individuals with easy access to LabCorp’s leading diagnostic tests online. These developments are expected to have positively contributed to the company’s Diagnostics arm in the first quarter.
The Zacks Consensus Estimate for LabCorp Diagnostics’ first-quarter revenues is pegged at $2.52 billion, significantly lower than the year-ago quarter’s reported figure of $2.76 billion.
Key Q1 Estimates
The Zacks Consensus Estimate for first-quarter earnings of $5.88 per share implies a 33.1% plunge from the year-ago reported figure. The consensus estimate for revenues is pegged at $4.04 billion, suggesting a 2.9% fall from the prior-year reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here, as you can see:
Earnings ESP: The company has an Earnings ESP of -0.22%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Alcon Inc. (ALC - Free Report) has an Earnings ESP of +10.04% and a Zacks Rank of #2. Alcon is expected to release first-quarter 2022 results on May 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alcon’s long-term earnings growth rate is estimated at 14.7%. ALC’s earnings yield of 3.01% compares with the industry’s (6.48%).
Lucira Health, Inc. has an Earnings ESP of +485.72% and a Zacks Rank of #2. Lucira Health is slated to report first-quarter 2022 results on May 12.
Lucira Health’s long-term earnings growth rate is estimated at 40.2%. LHDX’s earnings yield of 27.92% compares favorably with the industry’s 0.42%.
Meridian Bioscience, Inc. has an Earnings ESP of +26.32% and a Zacks Rank of #2. Meridian Bioscience is scheduled to release second-quarter fiscal 2022 results on May 6.
Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s earnings yield of 5.05% compares favorably with the industry’s 0.42%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.