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Dec 31, 2019

LabCorp Q4 2019 Earnings Report

LabCorp's Q4 2019 results were announced, showing revenue growth and increased adjusted EPS.

Key Takeaways

LabCorp reported a 6% increase in revenue for Q4 2019, reaching $3.0 billion. Diluted EPS increased to $2.32, and adjusted EPS rose by 13% to $2.86. Free cash flow also increased by 21% to $442 million.

Revenue for Q4 2019 was $3.0 billion, a 6% increase year-over-year.

Diluted EPS for Q4 2019 increased to $2.32, up from $1.56 last year.

Adjusted EPS for Q4 2019 grew by 13% to $2.86.

Free cash flow for Q4 2019 was $442 million, a 21% increase year-over-year.

Total Revenue
$2.95B
Previous year: $2.79B
+5.9%
EPS
$2.86
Previous year: $2.52
+13.5%
Gross Profit
$821M
Previous year: $772M
+6.3%
Cash and Equivalents
$338M
Previous year: $427M
-20.9%
Free Cash Flow
$442M
Previous year: $364M
+21.3%
Total Assets
$18B
Previous year: $16.2B
+11.5%

LabCorp

LabCorp

LabCorp Revenue by Segment

Forward Guidance

LabCorp anticipates revenue growth between 4.0% and 6.0% over 2019 revenue. Adjusted EPS is projected to be between $11.75 and $12.15, and free cash flow is expected to range from $950 million to $1.05 billion.

Positive Outlook

  • Revenue growth of 4.0% to 6.0% over 2019 revenue of $11.55 billion, which includes the negative impact from the disposition of business of approximately 0.2% as well as the benefit from foreign currency translation of 0.4%.
  • Revenue growth in LabCorp Diagnostics of 0.5% to 2.5% over 2019 revenue of $7.00 billion, which includes the negative impact from PAMA of approximately 1.3% as well as the benefit from one additional revenue day of 0.4% and foreign currency translation of 0.1%.
  • Revenue growth in Covance Drug Development of 7.0% to 9.5% over 2019 revenue of $4.58 billion, which includes the negative impact from the disposition of business of approximately 0.5% as well as the benefit from foreign currency translation of 0.7%.
  • Adjusted EPS of $11.75 to $12.15, an increase of 3.8% to 7.3% over 2019 adjusted EPS of $11.32.
  • Free cash flow (operating cash flow less capital expenditures) of $950 million to $1.05 billion, compared to $1.04 billion in 2019.

Revenue & Expenses

Visualization of income flow from segment revenue to net income