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Dec 31, 2021

LabCorp Q4 2021 Earnings Report

Labcorp's Q4 2021 financial performance decreased compared to the previous year due to a decline in COVID-19 testing, while the base business experienced growth.

Key Takeaways

Labcorp's Q4 2021 revenue was $4.06 billion, a decrease of 9.7% compared to Q4 2020. Diluted EPS was $5.75, down from $9.54 in the same period last year. The company's base business grew by 5.0%, offsetting a decline in COVID-19 testing revenue. Labcorp provided 2022 guidance, including adjusted EPS of $17.25 to $21.25 and free cash flow of $1.7 billion to $1.9 billion.

Revenue for Q4 2021 was $4.1 billion, compared to $4.5 billion in the previous year.

Diluted EPS for Q4 2021 was $5.75, versus $9.54 last year.

Adjusted EPS for Q4 2021 was $6.77, compared to $10.56 last year.

Free cash flow for Q4 2021 was $548 million, versus $675 million last year.

Total Revenue
$4.06B
Previous year: $4.49B
-9.7%
EPS
$6.77
Previous year: $10.6
-35.9%
Backlog
$15B
Gross Profit
$1.38B
Previous year: $1.9B
-27.8%
Cash and Equivalents
$1.47B
Previous year: $1.32B
+11.5%
Free Cash Flow
$548M
Previous year: $675M
-18.9%
Total Assets
$20.4B
Previous year: $20.1B
+1.6%

LabCorp

LabCorp

LabCorp Revenue by Segment

Forward Guidance

Labcorp provided full-year 2022 guidance including revenue, adjusted EPS, and free cash flow.

Positive Outlook

  • Adjusted EPS of $17.25 to $21.25.
  • Free Cash Flow of $1.7 billion to $1.9 billion.
  • Base Business revenue growth of 7.5% to 10.0%.
  • Total Drug Development revenue growth of 7.0% to 9.5%.
  • Continued Base Business growth in 2022 and beyond.

Challenges Ahead

  • COVID-19 Testing revenue decline of (75.0%) to (60.0%).
  • Total Diagnostics revenue decline of (17.5%) to (11.5%).
  • Impact from foreign currency translation of (0.2%).
  • Impact from foreign currency translation of (0.1%).
  • Impact from foreign currency translation of (0.4%).

Revenue & Expenses

Visualization of income flow from segment revenue to net income