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Here's How Labcorp (LH) is Placed Ahead of Q2 Earnings Release
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Laboratory Corporation of America Holdings (LH - Free Report) , or Labcorp, is slated to report second-quarter 2024 results on Aug 1 before market open.
In the last reported quarter, the company’s adjusted earnings of $3.68 topped the Zacks Consensus Estimate by 6.36%. Labcorp surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 1.38%.
Q2 Estimates
The Zacks Consensus Estimate for Labcorp’s second-quarter 2024 revenues is pegged at $3.20 billion. This suggests a 5.4% rise from the year-ago reported figure.
The Zacks Consensus Estimate for its second-quarter 2024 EPS of $3.78 indicates a 10.5% improvement from the 2023 comparable figure.
Estimate Revision Trend Ahead of Q2 Earnings
Estimates for Labcorp’s Q2 earnings have remained unchanged at $3.78 per share in the past 30 days.
Here’s a brief overview of the Medtech diagnostic provider’s developments leading up to this announcement.
Factors at Play
In the second quarter of 2024, both Diagnostic Laboratories (Dx) and Biopharma Laboratory Services (“BLS”) segments are likely to have delivered a robust performance, driving the company’s top-line growth. Biopharma may have benefitted from the continued strength of its largest component, the Central Laboratories business.
Within Dx, Labcorp’s status as a preferred partner for health systems and regional local laboratories is expected to help advance its strategic priorities. The company may have continued leveraging science, technology and innovation to bring new test services and capabilities to its customers.
In May 2024, Labcorp became the first to launch a screening test to assess preeclampsia risk during pregnancy. The introduction of GFAP (glial fibrillary acidic protein) and pTau217 tests have extended its leadership in blood-based biomarkers for neurodegenerative diseases.
During April, the company also expanded its precision oncology portfolio within Dx to support the partners in their drug development programs, such as enhancing the Labcorp Plasma Complete cell-free DNA comprehensive genomic profiling test and adding more capabilities to cell and gene therapy. The new Labcorp Plasma Detect liquid biopsy test, launched in April, may have further strengthened the company’s position in the high-growth field of oncology.
Recently, in June, newer strategic service offerings such as the Labcorp Tissue Complete and OmniSeq INSIGHT circulating tumor DNA (ctDNA) were added to the product lineup.
Moreover, the new weight loss management test suite may have delivered a solid performance. We expect all these developments to have favorably contributed to the revenues in the second quarter of 2024. Labcorp is likely to have benefited from the FDA’s Emergency Use Authorization grant for its Mpox PCR Test Home Collection Kit, enhancing its diagnostics options amid the surging mpox cases in the United States. The tests can now be ordered by physicians for patients aged 18 or older suspected of mpox (monkeypox) infection.
On the business development side, Labcorp acquired Providence and Baystate Health's outreach laboratory businesses in the second quarter of 2024. These additions are expected to have favored its top-line performance as well. In April, the company won the bid to purchase select Invitae assets, which are likely to have furthered its strategy to launch and scale specialty testing in oncology and rare diseases.
The Zacks Consensus Estimate indicates that Dx’s revenues in the second quarter are likely to improve by 5.7% year over year.
Within Biopharma, the company is expected to experience strong profitability, banking on the higher-margin nature of products. The recent launch of electronic requisition digital capability to help biopharma customers and investigator sites may have helped in sales improvement during the to-be-reported quarter. Yet, early development sales may have continued to face a drab due to continued higher-than-normal cancellations and lower orders.
The Zacks Consensus Estimate for the BLS segment’s sales in the second quarter indicates a likely improvement of 4.3% from the comparable 2023 period.
Furthermore, the company’s Launchpad initiative is expected to help improve its operational metrics and progress toward meeting its targeted savings goal by the end of this year. Going by the Zacks Consensus Estimate, the adjusted operating income for the Dx business shows an increase of 9.5%, while the same for the BLS arm indicates a 3.8% improvement year over year.
Earnings Whispers
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates. However, that is not the case here, as you can see below:
Earnings ESP: Labcorp has an Earnings ESP of -2.28%. 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 #4 (Sell).
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter:
HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 79.17%. The Zacks Consensus Estimate for the company’s second-quarter EPS is expected to surge 266.7% from the year-ago quarter figure.
HCA Healthcare (HCA - Free Report) has an Earnings ESP of +7.10% and a Zacks Rank #2. The company is slated to release results for the second quarter of 2024 on Jul 23.
HCA’s earnings surpassed estimates in three of the trailing four quarters, with the average surprise being 5.64%. The Zacks Consensus Estimate for HCA Healthcare’s second-quarter EPS is expected to jump 15.9% from the year-ago quarter figure.
Penumbra (PEN - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #2. The company is scheduled to release results for the second quarter of 2024 on Jul 30.
The company’s earnings surpassed estimates in three of the trailing four quarters and missed in one, with the average surprise being 25.97%. The Zacks Consensus Estimate for PEN’s 2024 second-quarter EPS is expected to improve 30.2% from the year-ago reported figure.
Image: Bigstock
Here's How Labcorp (LH) is Placed Ahead of Q2 Earnings Release
Laboratory Corporation of America Holdings (LH - Free Report) , or Labcorp, is slated to report second-quarter 2024 results on Aug 1 before market open.
In the last reported quarter, the company’s adjusted earnings of $3.68 topped the Zacks Consensus Estimate by 6.36%. Labcorp surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 1.38%.
Q2 Estimates
The Zacks Consensus Estimate for Labcorp’s second-quarter 2024 revenues is pegged at $3.20 billion. This suggests a 5.4% rise from the year-ago reported figure.
The Zacks Consensus Estimate for its second-quarter 2024 EPS of $3.78 indicates a 10.5% improvement from the 2023 comparable figure.
Estimate Revision Trend Ahead of Q2 Earnings
Estimates for Labcorp’s Q2 earnings have remained unchanged at $3.78 per share in the past 30 days.
Here’s a brief overview of the Medtech diagnostic provider’s developments leading up to this announcement.
Factors at Play
In the second quarter of 2024, both Diagnostic Laboratories (Dx) and Biopharma Laboratory Services (“BLS”) segments are likely to have delivered a robust performance, driving the company’s top-line growth. Biopharma may have benefitted from the continued strength of its largest component, the Central Laboratories business.
Within Dx, Labcorp’s status as a preferred partner for health systems and regional local laboratories is expected to help advance its strategic priorities. The company may have continued leveraging science, technology and innovation to bring new test services and capabilities to its customers.
In May 2024, Labcorp became the first to launch a screening test to assess preeclampsia risk during pregnancy. The introduction of GFAP (glial fibrillary acidic protein) and pTau217 tests have extended its leadership in blood-based biomarkers for neurodegenerative diseases.
Labcorp Price and EPS Surprise
Labcorp price-eps-surprise | Labcorp Quote
During April, the company also expanded its precision oncology portfolio within Dx to support the partners in their drug development programs, such as enhancing the Labcorp Plasma Complete cell-free DNA comprehensive genomic profiling test and adding more capabilities to cell and gene therapy. The new Labcorp Plasma Detect liquid biopsy test, launched in April, may have further strengthened the company’s position in the high-growth field of oncology.
Recently, in June, newer strategic service offerings such as the Labcorp Tissue Complete and OmniSeq INSIGHT circulating tumor DNA (ctDNA) were added to the product lineup.
Moreover, the new weight loss management test suite may have delivered a solid performance. We expect all these developments to have favorably contributed to the revenues in the second quarter of 2024. Labcorp is likely to have benefited from the FDA’s Emergency Use Authorization grant for its Mpox PCR Test Home Collection Kit, enhancing its diagnostics options amid the surging mpox cases in the United States. The tests can now be ordered by physicians for patients aged 18 or older suspected of mpox (monkeypox) infection.
On the business development side, Labcorp acquired Providence and Baystate Health's outreach laboratory businesses in the second quarter of 2024. These additions are expected to have favored its top-line performance as well. In April, the company won the bid to purchase select Invitae assets, which are likely to have furthered its strategy to launch and scale specialty testing in oncology and rare diseases.
The Zacks Consensus Estimate indicates that Dx’s revenues in the second quarter are likely to improve by 5.7% year over year.
Within Biopharma, the company is expected to experience strong profitability, banking on the higher-margin nature of products. The recent launch of electronic requisition digital capability to help biopharma customers and investigator sites may have helped in sales improvement during the to-be-reported quarter. Yet, early development sales may have continued to face a drab due to continued higher-than-normal cancellations and lower orders.
The Zacks Consensus Estimate for the BLS segment’s sales in the second quarter indicates a likely improvement of 4.3% from the comparable 2023 period.
Furthermore, the company’s Launchpad initiative is expected to help improve its operational metrics and progress toward meeting its targeted savings goal by the end of this year. Going by the Zacks Consensus Estimate, the adjusted operating income for the Dx business shows an increase of 9.5%, while the same for the BLS arm indicates a 3.8% improvement year over year.
Earnings Whispers
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates. However, that is not the case here, as you can see below:
Earnings ESP: Labcorp has an Earnings ESP of -2.28%. 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 #4 (Sell).
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter:
Hims & Hers Health (HIMS - Free Report) has an Earnings ESP of +19.28% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The company is scheduled to release results for the second quarter of 2024 on Aug 5.
HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 79.17%. The Zacks Consensus Estimate for the company’s second-quarter EPS is expected to surge 266.7% from the year-ago quarter figure.
HCA Healthcare (HCA - Free Report) has an Earnings ESP of +7.10% and a Zacks Rank #2. The company is slated to release results for the second quarter of 2024 on Jul 23.
HCA’s earnings surpassed estimates in three of the trailing four quarters, with the average surprise being 5.64%. The Zacks Consensus Estimate for HCA Healthcare’s second-quarter EPS is expected to jump 15.9% from the year-ago quarter figure.
Penumbra (PEN - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #2. The company is scheduled to release results for the second quarter of 2024 on Jul 30.
The company’s earnings surpassed estimates in three of the trailing four quarters and missed in one, with the average surprise being 25.97%. The Zacks Consensus Estimate for PEN’s 2024 second-quarter EPS is expected to improve 30.2% from the year-ago reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.