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LabCorp (LH) Beats on Q2 Earnings and Revenue Estimates

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Laboratory Corp. of America Holdings (LH - Free Report) 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 #4(Sell) but that could change following its second quarter 2017 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 $2.38 per share over the last 30 days. LabCorp’s second quarter adjusted earnings per share of $2.47, up 4.7% year over year has surpassed this estimate by 3.9%.

Sales: LabCorp posted sales of $2.49 billion in the reported quarter, which has surpassed the Zacks Consensus Estimate for sales of $2.47 billion.

Key Stats: Revenues from LabCorp Diagnostics segment increased 8.4% year over year to $1.79 billion in the second quarter, with total volume growth of 5.0%. However, revenues from Covance Drug Development segment declined by 3.1% year over year to $699.7 million because of sluggish revenue conversion  and adverse effect of the cancellation by sponsors of two large clinical studies in late 2016.

Major Factors: Per management, LabCorp made impressive progress and performed outstandingly in the Diagnostics business on back of excellent organic growth and strategic acquisitions during the quarter. However, the Drug Development business performed as per the company's expectation due to increased net orders and improving net book-to-bill. The company has also raised its full year 2017 outlook.

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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