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Jun 30, 2023
LabCorp Q2 2023 Earnings Report
Labcorp's second quarter performance in 2023 showed revenue growth driven by the Base Business, offset by a decrease in COVID-19 testing, and the company provided full-year guidance.
Key Takeaways
Labcorp announced strong Q2 2023 results with revenue increasing by 4% to $3.0 billion, driven by a 13% growth in the Base Business. Diluted EPS was $1.74, and adjusted EPS was $3.42. The company completed the spin-off of Fortrea and announced a $1.0 billion accelerated share repurchase program.
Completed the spin-off of Fortrea on June 30, which is treated as discontinued operations.
Announced a $1.0 billion accelerated share repurchase program.
Drove growth through new and expanded healthcare system partnerships.
Second quarter revenue grew 4% versus last year as the Base Business grew 13%.
LabCorp
LabCorp
LabCorp Revenue by Segment
Revenue by Segment
Diagnostics Revenue
CapyFin.comBiopharma Lab Services Revenue
CapyFin.com Forward Guidance
Labcorp provided full-year 2023 guidance, projecting adjusted EPS of $13.00 to $14.00 and free cash flow of $0.8 billion to $1.0 billion.
Positive Outlook
- Base Business revenue is expected to grow between 11.3% and 12.6%.
- Biopharma Lab Services revenue is expected to grow between 3.0% and 4.5%.
- Adjusted EPS is projected to be between $13.00 and $14.00.
- Free Cash Flow from continuing operations is expected to be between $0.8 billion and $1.0 billion.
- Total Diagnostics Laboratories revenue is expected to grow between 0.5% and 1.5%.
Challenges Ahead
- COVID-19 Testing revenue is expected to decline by 89.0% to 85.0%.
- Foreign currency translation is expected to have a 0.3% negative impact on revenue.
- COVID-19 Testing revenue is expected to significantly decrease.
- Unspecified capital allocation impacts including acquisitions, share repurchases and dividends.
- Foreign currency translation is expected to have a (0.1%) negative impact on Total Diagnostics Laboratories.
Revenue & Expenses
Visualization of income flow from segment revenue to net income