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Dec 31, 2020
LabCorp Q4 2020 Earnings Report
Labcorp's Q4 2020 results were announced, highlighted by significant revenue and EPS growth driven by COVID-19 testing and base business improvement.
Key Takeaways
Labcorp announced strong Q4 2020 results with a 52% increase in revenue to $4.5 billion and a significant rise in diluted EPS to $9.54, driven by COVID-19 testing and improvements in the base business. The company also provided full year 2021 guidance, expecting adjusted EPS between $19.00 and $23.00 and free cash flow between $1.7 billion and $1.9 billion.
Revenue increased to $4.5 billion, up 52% from the previous year, driven by organic growth and COVID-19 testing.
Diluted EPS rose to $9.54, a significant increase from $2.32 in the same quarter of the previous year.
Adjusted EPS reached $10.56, up from $2.86 year-over-year.
Free cash flow increased to $675 million, compared to $442 million in the prior year.
Revenue by Segment
Forward Guidance
Labcorp provided its outlook for 2021, including revenue growth, adjusted EPS, and free cash flow.
Positive Outlook
- Total Labcorp Enterprise revenue is expected to increase by (1.0%) to 4.5%.
- Base Business revenue is projected to grow between 11.0% and 13.5%.
- Total Diagnostics revenue is anticipated to increase by (7.5%) to (0.5%).
- Total Drug Development revenue is forecasted to grow between 8.0% and 10.5%.
- Free Cash Flow is expected to be in the range of $1.7 billion to $1.9 billion.
Challenges Ahead
- COVID-19 Testing revenue is expected to decline by (50.0%) to (35.0%).
- COVID-19 Testing revenue for Total Diagnostics is expected to decline by (50.0%) to (35.0%).
- Adjusted EPS is projected to be between $19.00 and $23.00.
- The guidance assumes foreign exchange rates effective as of December 31, 2020.
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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