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Jun 30, 2021

LabCorp Q2 2021 Earnings Report

Labcorp's second quarter performance was strong, driven by the company's focus on science, innovation, and technology.

Key Takeaways

Labcorp announced strong second-quarter results, with revenue increasing by 38.7% to $3.84 billion and diluted EPS rising to $4.76. The company raised its full-year guidance, reflecting its improved outlook.

Revenue: Q2 of $3.8 billion, versus $2.8 billion last year

Diluted EPS: Q2 of $4.76, versus $2.37 last year

Adjusted EPS: Q2 of $6.13, versus $2.57 last year

Free Cash Flow: Q2 of $390 million, versus $272 million last year

Total Revenue
$3.84B
Previous year: $2.77B
+38.7%
EPS
$6.13
Previous year: $2.57
+138.5%
Net Orders
$7.86B
Net Book-to-Bill
1.41
Previous year: 1.32
+6.8%
Backlog
$14.3B
Gross Profit
$1.26B
Previous year: $761M
+66.3%
Cash and Equivalents
$1.96B
Previous year: $557M
+252.5%
Free Cash Flow
$390M
Previous year: $272M
+43.3%
Total Assets
$20.4B
Previous year: $17.8B
+14.4%

LabCorp

LabCorp

LabCorp Revenue by Segment

Forward Guidance

Labcorp is raising 2021 full year guidance to reflect its strong second quarter performance and improved full year outlook.

Positive Outlook

  • Revenue raised to range of 6.5% to 9.0%
  • Adjusted EPS raised to range of $21.50 to $25.00
  • Free Cash Flow raised to range of $1.95 billion to $2.15 billion
  • Base Business revenue is expected to grow between 17.0% and 19.0%
  • Drug Development revenue is expected to grow between 17.0% and 19.0%

Challenges Ahead

  • COVID-19 Testing revenue is expected to decline between (38.0%) and (33.0%)
  • Total Diagnostics revenue is expected to decline between (1.0%) and 2.0%
  • COVID-19 Testing revenue is expected to decline between (38.0%) and (33.0%)
  • Adjusted EPS is raised to range of $21.50 to $25.00
  • Free Cash Flow is raised to range of $1.95 billion to $2.15 billion