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Mar 31, 2022

LabCorp Q1 2022 Earnings Report

Labcorp's first quarter performance reflected a solid financial outcome despite Omicron's impact, with the company advancing its strategy through science, innovation, and technology.

Key Takeaways

Labcorp's Q1 2022 revenue reached $3.9 billion, a decrease from $4.2 billion year-over-year. Diluted EPS was $5.23, and adjusted EPS was $6.11. The company initiated a quarterly dividend and updated its full-year guidance, with adjusted EPS expected to be $18.25 to $21.00 and free cash flow projected at $1.7 billion to $1.9 billion.

Revenue for Q1 2022 was $3.9 billion, compared to $4.2 billion in the previous year.

Diluted EPS for Q1 2022 was $5.23, versus $7.82 last year.

Adjusted EPS for Q1 2022 was $6.11, compared to $8.79 last year.

Free cash flow for Q1 2022 was $239 million, a decrease from $1.1 billion in the prior year.

Total Revenue
$3.9B
Previous year: $4.16B
-6.3%
EPS
$6.11
Previous year: $8.79
-30.5%
Net Orders
$7.2B
Net Book-to-Bill
1.23
Previous year: 1.47
-16.3%
Backlog
$15.2B
Gross Profit
$1.23B
Previous year: $1.6B
-22.9%
Cash and Equivalents
$1.2B
Previous year: $1.89B
-36.5%
Free Cash Flow
$239M
Previous year: $1.06B
-77.5%
Total Assets
$20.7B
Previous year: $20.4B
+1.5%

LabCorp

LabCorp

LabCorp Revenue by Segment

Forward Guidance

Labcorp is updating 2022 full year guidance to reflect its first quarter performance and full-year outlook. The following guidance assumes foreign exchange rates effective as of March 31, 2022, for the remainder of the year. Enterprise level guidance includes the estimated impact from currently anticipated capital allocation, including acquisitions, share repurchases and dividends.

Positive Outlook

  • Total Labcorp Enterprise Revenue between $(5.5%) and $(1.5%)
  • Base Business Revenue between 8.0% and 10.0%
  • COVID-19 Testing Revenue between (70.0%) and (60.0%)
  • Total Diagnostics Revenue between (15.5%) and (11.5%)
  • Total Drug Development Revenue between 6.0% and 8.5%

Revenue & Expenses

Visualization of income flow from segment revenue to net income