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LabCorp Q1 Revenues Drop 1 Percent

NEW YORK (GenomeWeb) – Laboratory Corporation of America today reported that its first quarter revenues declined around 1 percent year over year partially due to inclement weather in the US.

The diagnostic testing services firm reported total revenues of $1.43 billion for the three months ended March 31, down from $1.44 billion in Q1 2013. It fell short of the Consensus Wall Street estimate of $1.45 billion.

According to the company, inclement weather cut its sales for the quarter by $42 million.

LabCorp said that its test volume, measured by requisitions was up nearly 3 percent year over year. However, revenue per requisition declined around 3 percent due to Medicare payment reductions, test mix, and its Canadian business.

LabCorp posted net income of $113.1 million, or $1.31 per share, for Q1 2014, versus $147.2 million, or $1.56 per share, for Q1 2013. On an adjusted basis excluding amortization, its EPS was $1.51 compared to $1.74 and short of the consensus analyst estimate of $1.58.

The firm spent $284.9 million in SG&A, up slightly from $283.2 million in Q1 2013.

It finished the quarter with $338.9 million in cash and short-term investments.

LabCorp said that it expects to report FY 2014 revenue growth of around 2 percent with adjusted EPS excluding amortization between $6.40 and $6.70, up from previous guidance of $6.35 to $6.65 per share.

In Monday morning trade on the New York Stock Exchange, shares of LabCorp were down 4 percent at $95.62.