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Sep 30, 2020

LabCorp Q3 2020 Earnings Report

LabCorp's Q3 2020 earnings were announced, demonstrating significant revenue and EPS growth.

Key Takeaways

LabCorp announced strong Q3 2020 results, with revenue increasing by 33.0% to $3.9 billion and diluted EPS rising to $7.17. The company's performance was driven by COVID-19 testing and improvements in its base business, leading to increased operating income and free cash flow. LabCorp also decided to return all money received from the CARES Act Provider Relief Funds due to its improved financial outlook.

Q3 revenue increased to $3.9 billion, a 33.0% rise from the previous year.

Diluted EPS for Q3 reached $7.17, significantly up from $2.25 last year; adjusted EPS was $8.41, compared to $2.90 last year.

Q3 free cash flow grew to $709 million, an increase from $363 million in the prior year.

LabCorp will return all money received from the CARES Act Provider Relief Funds due to improved financial performance.

Total Revenue
$3.9B
Previous year: $2.93B
+33.0%
EPS
$8.41
Previous year: $2.9
+190.0%
Trailing Twelve Month Net Orders
$6.13B
Book-to-Bill Ratio
1.31
Backlog
$12.5B
Gross Profit
$1.56B
Previous year: $817M
+90.8%
Cash and Equivalents
$667M
Previous year: $361M
+84.8%
Free Cash Flow
$709M
Previous year: $363M
+95.3%
Total Assets
$18.7B
Previous year: $17.8B
+5.0%

LabCorp

LabCorp

LabCorp Revenue by Segment

Forward Guidance

Given the continued unpredictability pertaining to the COVID-19 pandemic, there are a wide-range of potential financial outcomes. As a result, the Company continues to not provide 2020 guidance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income