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Sep 30, 2024

LabCorp Q3 2024 Earnings Report

Labcorp demonstrated strong performance in Diagnostics and Biopharma Laboratories, driven by robust organic growth.

Key Takeaways

Labcorp announced its Q3 2024 results, showcasing strong performance in Diagnostics and Biopharma Laboratories. Revenue increased to $3.28 billion, and adjusted EPS reached $3.50. The company also updated its full-year guidance, reflecting confidence in continued growth.

Revenue reached $3.28 billion, a 7.4% increase compared to the previous year.

Diluted EPS was reported at $2.00, while adjusted EPS stood at $3.50.

Free cash flow amounted to $162 million.

The company announced three new acquisitions/lab management agreements and closed two acquisitions to support growth initiatives.

Total Revenue
$3.28B
Previous year: $3.06B
+7.4%
EPS
$3.5
Previous year: $3.38
+3.6%
Backlog
$8.14B
Previous year: $7.79B
+4.5%
Gross Profit
$904M
Previous year: $851M
+6.3%
Cash and Equivalents
$1.52B
Previous year: $728M
+108.4%
Free Cash Flow
$162M
Previous year: $171M
-5.3%
Total Assets
$18.6B
Previous year: $16.9B
+10.2%

LabCorp

LabCorp

LabCorp Revenue by Segment

Forward Guidance

Labcorp updated its full-year 2024 guidance to reflect its third-quarter performance and full-year outlook. The guidance assumes foreign exchange rates effective as of September 30, 2024, 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

  • Revenue: 6.6% to 7.3%
  • Diagnostics Laboratories Revenue: 7.2% to 7.8%
  • Biopharma Laboratory Services Revenue: 4.7% to 5.6%
  • Adjusted EPS: $14.30 to $14.70
  • Free Cash Flow from Cont. Ops: $850 million to $980 million

Challenges Ahead

  • Midpoint of Adjusted EPS range decreased by $0.10 due to weather impact.
  • Guidance assumes foreign exchange rates effective as of September 30, 2024.
  • Guidance includes estimated impact from capital allocation activities.
  • Potential fluctuations in foreign exchange rates.
  • Uncertainty in forecasting the precise impact of capital allocation.

Revenue & Expenses

Visualization of income flow from segment revenue to net income