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Sep 30, 2021

LabCorp Q3 2021 Earnings Report

Labcorp's Q3 2021 results were announced, demonstrating strong performance and leading to raised full-year guidance.

Key Takeaways

Labcorp reported a revenue increase of 4.3% to $4.06 billion compared to Q3 2020. Diluted EPS decreased to $6.05 from $7.17 in the same period last year, while adjusted EPS was $6.82 compared to $8.41 in Q3 2020. The company raised its full-year guidance for revenue, adjusted EPS, and free cash flow.

Revenue increased to $4.1 billion, compared to $3.9 billion last year.

Diluted EPS was $6.05, versus $7.17 last year.

Adjusted EPS was $6.82, versus $8.41 last year.

Free Cash Flow was $650 million, versus $709 million last year.

Total Revenue
$4.06B
Previous year: $3.9B
+4.3%
EPS
$6.82
Previous year: $8.41
-18.9%
Net Orders
$7.77B
Previous year: $6.13B
+26.8%
Backlog
$14.4B
Previous year: $12.5B
+15.5%
Gross Profit
$1.39B
Previous year: $1.56B
-11.2%
Cash and Equivalents
$2.04B
Previous year: $667M
+205.2%
Free Cash Flow
$650M
Previous year: $709M
-8.4%
Total Assets
$20.9B
Previous year: $18.7B
+11.3%

LabCorp

LabCorp

LabCorp Revenue by Segment

Forward Guidance

Labcorp raised its 2021 full year guidance to reflect its strong third-quarter performance and improved full-year outlook.

Positive Outlook

  • Revenue raised to range of 13.0% to 14.0%.
  • Adjusted EPS raised to range of $26.00 to $28.00.
  • Free Cash Flow raised to range of $2.45 billion to $2.60 billion
  • Base Business revenue is expected to grow between 18.5% and 19.5%.
  • Drug Development revenue is expected to grow between 19.5% and 20.5%.

Challenges Ahead

  • COVID-19 Testing revenue is expected to decline between (11.0%) and (6.0%).
  • Diagnostics revenue is expected to grow between 8.0% and 10.0%.
  • Previous revenue guidance was 6.5% to 9.0%.
  • Previous Adjusted EPS guidance was $21.50 to $25.00.
  • Previous Free Cash Flow guidance was $1.95 to $2.15.

Revenue & Expenses

Visualization of income flow from segment revenue to net income