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Sep 30, 2022
LabCorp Q3 2022 Earnings Report
Labcorp's Q3 2022 results were announced, showing a decrease in revenue and earnings compared to the previous year, while strategic progress was made with the clinical development business spin-off and the establishment of a long-term relationship with Ascension.
Key Takeaways
Labcorp reported a decrease in revenue for Q3 2022, with $3.61 billion compared to $4.06 billion in Q3 2021. Diluted EPS decreased to $3.90 from $6.05, and adjusted EPS decreased to $4.68 from $6.82. The company is progressing with the spin-off of its Clinical Development business and has completed transactions to establish a long-term relationship with Ascension.
Revenue for Q3 2022 was $3.6 billion, a decrease of 11.2% compared to Q3 2021.
Diluted EPS for Q3 2022 was $3.90, compared to $6.05 in Q3 2021.
Adjusted EPS for Q3 2022 was $4.68, compared to $6.82 in Q3 2021.
Free cash flow for Q3 2022 was $270 million, compared to $650 million in Q3 2021.
Revenue by Segment
Forward Guidance
Labcorp is updating 2022 full year guidance to reflect its third quarter performance and fourth quarter outlook. The following guidance assumes foreign exchange rates effective as of September 30, 2022, for the remainder of the year. Enterprise level guidance includes the estimated impact from currently anticipated capital allocation, including acquisitions, share repurchases and dividends.
Positive Outlook
- Base Business Revenue Total Labcorp Enterprise to be between (6.0%) and (2.0%)
- Base Business Revenue to be between 3.0% and 4.0%
- COVID-19 Testing Revenue to be between (59.0%) and (57.0%)
- Base Business Total Diagnostics to be between 6.0% and 7.0%
- Adjusted EPS to be between $19.25 and $20.25
Challenges Ahead
- Revenue Total Labcorp Enterprise to be between (7.5%) and (6.0%)
- COVID-19 Testing Revenue to be between (60.0%) and (50.0%)
- Total Diagnostics to be between (11.5%) and (10.0%)
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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