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Jun 30, 2022
LabCorp Q2 2022 Earnings Report
Labcorp's Q2 2022 performance was marked by strategic progress and resilience amidst challenges.
Key Takeaways
Labcorp reported a decrease in revenue to $3.7 billion, a diluted EPS of $3.87, and an adjusted EPS of $4.96. The company announced plans to spin-off its Clinical Development business to enhance growth and focus. Despite revenue decline due to reduced COVID-19 testing, the base business showed growth, and the company launched several innovative diagnostics.
Revenue decreased to $3.7 billion compared to $3.84 billion in the second quarter of 2021.
Diluted EPS was $3.87, down from $4.76 in the same period last year.
Adjusted EPS decreased to $4.96 compared to $6.13 in the second quarter of 2021.
Free cash flow increased to $429 million from $390 million year-over-year.
LabCorp
LabCorp
LabCorp Revenue by Segment
Revenue by Segment
Diagnostics Revenue
CapyFin.comBiopharma Lab Services Revenue
CapyFin.com Forward Guidance
Labcorp updated its 2022 full year guidance to reflect its second quarter performance and full-year outlook.
Positive Outlook
- Full-Year 2022 Guidance: Adjusted EPS raised to $19.00 to $21.25
- Base Business revenue is expected to grow between 5.0% and 7.5%.
- Total Drug Development revenue growth is projected between 1.5% and 3.5%.
- The company anticipates free cash flow between $1.7 billion and $1.9 billion.
- COVID-19 Testing revenue decline is expected to be between (60.0%) and (50.0%).
Challenges Ahead
- Total Labcorp Enterprise revenue is expected to decline between (6.0%) and (2.0%).
- Total Diagnostics revenue is expected to decline between (13.0%) and (9.0%).
- Drug Development revenue growth is impacted by a foreign currency translation of (2.3%).
- Enterprise level revenue includes an impact from foreign currency translation of (0.8%).
- Lower pass-throughs impacted organic Base Business growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income