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Dec 31, 2022
LabCorp Q4 2022 Earnings Report
Announced fourth quarter and full-year results, providing 2023 guidance.
Key Takeaways
Labcorp's Q4 2022 results showed a revenue of $3.7 billion, a decrease from $4.1 billion in the previous year, with diluted EPS at $0.86 compared to $5.75. The company experienced a decrease in COVID-19 testing revenue but saw growth in its base business. They also provided full-year 2023 guidance, including adjusted EPS of $16.00 to $18.00 and free cash flow of $1.0 billion to $1.2 billion.
Revenue for Q4 was $3.7 billion, compared to $4.1 billion last year.
Diluted EPS for Q4 was $0.86, versus $5.75 last year.
Adjusted EPS for Q4 was $4.14, compared to $6.77 last year.
Free Cash Flow for Q4 was $536 million, versus $548 million last year.
LabCorp
LabCorp
LabCorp Revenue by Segment
Revenue by Segment
Diagnostics Revenue
CapyFin.comBiopharma Lab Services Revenue
CapyFin.com Forward Guidance
Labcorp provided full-year 2023 guidance, including adjusted EPS of $16.00 to $18.00 and free cash flow of $1.0 billion to $1.2 billion.
Positive Outlook
- Base Business revenue growth in Diagnostics is expected to be between 10.5% and 12.5%.
- Total Drug Development revenue is expected to grow between 5.0% and 7.0%.
- The company anticipates a positive impact from capital allocation, including acquisitions, share repurchases, and dividends.
- The guidance assumes that the Clinical Development business will be with Labcorp for the full year.
- Free Cash Flow is expected to be between $1.0 billion and $1.2 billion.
Challenges Ahead
- COVID-19 Testing revenue is expected to decline by 90.0% to 75.0%.
- Total Diagnostics revenue is expected to decline between 2.0% and grow 1.5%.
- 2023 Guidance includes an impact from foreign currency translation of 0.0%.
- 2023 Guidance includes an impact from foreign currency translation of (0.2%) for total diagnostics.
- 2023 Guidance includes an impact from foreign currency translation of 0.2% for total drug development.
Revenue & Expenses
Visualization of income flow from segment revenue to net income