LabCorp Q2 2022 Earnings Report
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
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