Piper Jaffray Introduces F2012 Estimates On LH

Piper Jaffray is introducing its Laboratory Corporation of America LH F2012 revenue estimate of $5,799.5M, reflecting expectations for 4.8% top-line growth. “Our revenue estimate includes 7.1% esoteric growth to $2.4B and a 3.3% increase in core to $3.1B,” Piper Jaffray writes. “We are modeling a 30 bpts yoy gross margin increase to 42.4%, reflecting operational efficiencies and improved revenue mix (i.e. higher esoteric) as the Genzyme Genetics business is integrated into LabCorp's operating structure.” Piper Jaffray said that it is modeling a 120 bpts yoy increase in EBIT margin to 20.6%, due primarily to synergies from the Genzyme Genetics acquisition, adding, “All in, our EPS estimate increases 15.2% yoy to $6.82.” Laboratory Corporation of America closed Wednesday at $88.07.