Skip to main content
Premium Trial:

Request an Annual Quote

LabCorp Posts 3 Percent Revenue Growth for Q3

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.

The Scan

US Booster Eligibility Decision

The US CDC director recommends that people at high risk of developing COVID-19 due to their jobs also be eligible for COVID-19 boosters, in addition to those 65 years old and older or with underlying medical conditions.

Arizona Bill Before Judge

The Arizona Daily Star reports that a judge is weighing whether a new Arizona law restricting abortion due to genetic conditions is a ban or a restriction.

Additional Genes

Wales is rolling out new genetic testing service for cancer patients, according to BBC News.

Science Papers Examine State of Human Genomic Research, Single-Cell Protein Quantification

In Science this week: a number of editorials and policy reports discuss advances in human genomic research, and more.