NEW YORK (GenomeWeb News) – Laboratory Corporation of America today reported fourth quarter revenue growth of around 2 percent, but it fell short of Wall Street estimates on the top and bottom line.
The clinical lab giant reported total revenues of $1.44 billion for the three months ended Dec. 31, up from $1.41 billion for the fourth quarter of 2012 but below the average analyst estimate of $1.45 billion.
It posted net income of $126.3 million, or $1.43 per share, on a GAAP basis, compared to $120.2 million, or $1.26 per share, for Q4 2012. On a non-GAAP basis, its EPS was $1.61 versus $1.54 for Q4 2012, and falling short of the consensus Wall Street estimate of $1.66.
LabCorp reported SG&A expenses of $285.7 million, up around 2 percent year over year from $278.8 million, while its restructuring and other special charges dropped sharply to $4 million from $20.7 million.
For full-year 2013, LabCorp generated revenues of $5.81 billion, an increase of 2 percent year over from $5.67 billion. It fell short of the average analyst estimate of $5.82 billion.
LabCorp's profit for the year was $573.8 million, or $6.25 per share, on a GAAP basis, compared to $583.1 million, or $5.99 per share, for FY 2012. On a non-GAAP basis, EPS was $6.95, up from $6.82 year over year and shy of the consensus estimate of $6.99.
Its SG&A costs for the year increased to $1.13 billion from $1.11 billion, while its restructuring and other special charges fell to $21.8 million from $25.3 million, and its charges for amortization of intangibles and other assets dropped to $81.7 million from $86.3 million.
"We are pleased with our 2013 performance, especially given the significant government payment reductions and the unexpected reimbursement issues related to new molecular pathology codes," LabCorp Chairman and CEO David King said in a statement. "In 2014, we will focus on the execution of our five-pillar strategy and disciplined capital allocation to grow the business and create shareholder value in the years ahead."
The firm noted that during 2013 "government payment reductions and molecular pathology payment issues reduced the company's year over year margins by approximately 150 basis points, reduced year over year revenue per requisition by approximately 2 percent, and reduced year over year operating cash flow by more than $100 million."
LabCorp said that it expects FY 2014 revenue growth of around 2 percent and adjusted EPS excluding amortization of $6.35 to $6.65.
In Friday morning trade on the New York Stock Exchange, shares of LabCorp were down 2 percent at $88.31.