Skip to main content
Premium Trial:

Request an Annual Quote

LabCorp Posts 3 Percent Q4 Revenue Growth; $1B Share Repurchase Authorized

NEW YORK (GenomeWeb News) – Laboratory Corporation of America today reported that its fourth-quarter revenues increased 3 percent, beating analyst expectations, as disruptions due to inclement weather hit the firm's bottom line.

The Burlington, NC-based clinical lab firm brought in total revenues of $1.41 billion for the three months ended Dec. 31, exceeding Wall Street's consensus expectation of $1.39 billion and above Q4 2011 revenues of $1.37 billion.

Its profit for the quarter was $120.2 million, or $1.26 per share, compared to net income of $135.4 million, or $1.34 per share, for the fourth quarter of 2011. On an adjusted basis, the firm's EPS was $1.54, below the consensus Wall Street estimate of $1.62. LabCorp noted that the impact of inclement weather cut its adjusted EPS by $.09.

The firm's bottom line was reduced partially due to restructuring and other special charges that totaled $20.7 million versus $10.6 million for such charges in Q4 2011. Its SG&A expenses also climbed 3 percent to $278.8 million from $270.4 million.

For full-year 2012, LabCorp reported revenues of $5.67 billion, up 2 percent from $5.54 in 2011 and edging out analysts' consensus expectations of $5.66 billion.

The firm's net income for the year was $583.1 million, or $5.99 per share, compared to $519.7 million, or $5.11 per share, for 2011. On an adjusted basis, its FY 2012 EPS was $6.82, falling short of the average estimate of $6.89.

LabCorp's SG&A expenses for the year were trimmed 4 percent to $1.11 billion from $1.16 billion. Its restructuring and other special charges dropped sharply to $25.3 million from $80.9 million.

"We had a good year, despite operating through a challenging environment," LabCorp Chairman and CEO David King said in a statement.

The company also said that its board of directors has authorized a new $1 billion share repurchase program. During the fourth quarter, LabCorp repurchased $136.0 million of stock, representing 1.6 million shares, and noted that as of the end of 2012 it had $68.0 million of repurchase authorization remaining under its previously approved share repurchase plan.

For full-year 2013, LabCorp expects revenue growth of between 2 percent and 3 percent. It anticipates adjusted EPS excluding amortization of $6.85 to $7.15, which includes a negative impact of approximately $0.35 due to Medicare payment reductions, but excludes the impact of any share repurchase activity after Dec. 31, 2012.

The EPS guidance for 2013 is below the consensus estimate of $7.27

In early Friday trade on the New York Stock Exchange shares of LabCorp were down 2 percent at $89.73.

The Scan

Driving Malaria-Carrying Mosquitoes Down

Researchers from the UK and Italy have tested a gene drive for mosquitoes to limit the spread of malaria, NPR reports.

Office Space to Lab Space

The New York Times writes that some empty office spaces are transforming into lab spaces.

Prion Pause to Investigate

Science reports that a moratorium on prion research has been imposed at French public research institutions.

Genome Research Papers on Gut Microbe Antibiotic Response, Single-Cell RNA-Seq Clues to Metabolism, More

In Genome Research this week: gut microbial response to antibiotic treatment, approach to gauge metabolic features from single-cell RNA sequencing, and more.