Labcorp's Q4 Earnings Beat Consensus Despite 15% Decline In COVID-19 Testing Sales

Laboratory Corp of America Holdings LH Q4 FY21 revenue decreased 9.7% Y/Y to $4.06 billion, beating the consensus of $3.90 billion.

  • The decrease was due to organic revenue decline of 10.3%, partially offset by acquisitions of 0.6% and foreign currency translation of 0.1%.
  • The 10.3% decline in organic revenue was driven by a 15.3% decline in COVID-19 PCR and antibody testing, partially offset by a 5.0% increase in the company's organic Base Business, excluding COVID-19 Testing.
  • Also Read: Labcorp Bolsters Liquid Biopsy Capabilities With $450M PGDx Acquisition.
  • Adjusted operating income was $902.2 million (margin of 22%) compared to last year's $1.43 billion (margin of 31.8%), reflecting a reduction in COVID-19 Testing.
  • Adjusted EPS was $6.77, ahead of the consensus of $5.79.
  • At the end of the quarter, the company's cash balance and total debt were $1.5 billion and $5.4 billion, respectively. 
  • Guidance: For FY22, Labcorp expects overall sales to decline (6.5)% - (1.5)%, with COVID-19 testing down (75)% - (60)% and base business sales increase 7.5% - 10%.
  • It anticipates adjusted EPS of $17.25 - $21.25, down from $28.52 in FY21, and against the Wall Street consensus of $18.03.
  • Price Action: LH shares are up 3.32% at $291.00 during the premarket session on the last check Thursday.
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Posted In: EarningsNewsGuidanceHealth CareMoversTrading IdeasGeneralBriefsHealth CareHealth Care Services
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