LabCorp Analysts Boost Their Forecasts After Better-Than-Expected Earnings

Labcorp Holdings Inc LH reported better-than-expected second-quarter financial results and raised its FY24 revenue guidance above estimates on Thursday.

Laboratory Corp reported second-quarter 2024 adjusted EPS of $3.94, up from $3.42 a year ago, beating the consensus of $3.78. Sales increased 6.2% year-over-year to $3.22 billion, beating the consensus of $3.19 billion.

Diagnostics Laboratories revenue for the quarter was $2.52 billion, an increase of 7.9%. Biopharma Laboratory Services revenue increased 1.1% to $707.0 million.

LabCorp slashed its 2024 adjusted EPS outlook from $14.45-$15.35 to $14.30-$14.90, compared to the consensus of $14.82.

The company raised the 2024 revenue growth outlook from 4.8%- 6.4% to 6.4%- 7.5%, compared to the consensus of $12.83 billion.

Labcorp shares gained 0.1% to trade at $233.71 on Friday.

These analysts made changes to their price targets on Labcorp following earnings announcement.

• Truist Securities analyst David Macdonald maintained Labcorp with a Buy and raised the price target from $255 to $275.
• Baird analyst Eric Coldwell maintained the stock with an Outperform rating, while increasing the price target from $261 to $277.
• Barclays analyst Stephanie Davis maintained Labcorp Holdings with an Equal-Weight rating, while boosting the price target from $213 to $249.

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