NEW YORK (GenomeWeb News) – Laboratory Corporation of America today reported that its third quarter revenues increased 3 percent year over year, edging past the consensus Wall Street estimate.
The clinical lab giant posted revenues of $1.46 billion for the three months ended Sept. 30, compared to $1.42 billion for the third quarter of 2012. Analysts, on average, had expected revenues of $1.45 billion.
LabCorp's net income for the quarter was $148.3 million, or $1.63 per share, versus $148.0 million, or $1.53 per share, for Q3 2012. On an adjusted basis, it's EPS was $1.80, matching the Wall Street estimate.
The firm trimmed its SG&A spending 2 percent to $279 million from $285.1 million year over year. It also cut its charges for amortization of intangibles and other assets to $20.3 million from $21.1 million, and its restructuring and other special charges to $3.7 million from $4.8 million.
David King, chairman and CEO of LabCorp, said in a statement that the firm delivered "solid revenue and volume growth" in the quarter. However, "Government payment reductions and continued reimbursement challenges for molecular testing negatively affected our reported results in terms of revenue growth, price, and margins," he noted.
LabCorp finished the quarter with $174.1 million in cash and short-term investments.
It said that it anticipates FY 2013 revenue growth of 3 percent with adjusted EPS excluding amortization of $6.95 to $7.05. The consensus Wall Street estimate is for revenues of $5.79 billion and EPS of $7.05. LabCorp said the guidance includes a negative impact of roughly $.35 per share due to Medicare payment reductions.
The firm also said today that CFO and Treasurer Brad Hayes will retire next year. He will continue in his current capacity through the first half of 2014, unless LabCorp names a successor before then and a transition is completed.
In early Friday trade on the New York Stock Exchange, shares of LabCorp were down 2 percent at $100.72.