NEW YORK (GenomeWeb) – Laboratory Corporation of America today reported that its third quarter revenues increased 6 percent year over year, driven by a nearly 7 percent gain in test volume and fold-in acquisitions.
The Burlington, NC-based clinical lab and diagnostics developer reported total revenues of $1.55 billion for the three months ended Sept. 30, up from $1.46 billion in Q3 2013 and above the consensus Wall Street estimate of $1.50 billion.
The company noted that revenue per requisition fell nearly 1 percent year over year partially due to foreign currency translation.
LabCorp posted net income of $137.2 million, or $1.59 per share, versus a profit of $148.3 million, or $1.63 per share, for Q3 2013. On an adjusted basis, its EPS was $1.80, equal to the adjusted EPS for the third quarter of 2013 and above analysts' consensus estimate of $1.75.
LabCorp reported SG&A expenses of $305.7 million, up around 10 percent from $279 million in Q3 2013. It reported expenses of $18.3 million associated with amortization of intangibles and other assets versus $20.3 million for the comparable period a year ago, while restructuring and other special charges increased to $5.8 million from $3.7 million.
During the quarter the firm launched Enlighten Health Genomics, a business focused on leveraging the capabilities of next-generation sequencing technology in the clinical setting. That business plans to launch a whole-exome sequencing testing service called ExomeReveal, which will perform genome-wide interpretation of children with serious childhood genetic diseases, as well as diagnostic interpretation for patients regardless of age.
LabCorp also entered into an agreement to acquire LipoScience, an esoteric lab focused on personalized diagnostics for cardiovascular and metabolic disorders, for around $85 million.
The firm finished the quarter with $575.7 million in cash and cash equivalents.
Following the results, LabCorp raised its FY 2014 revenue growth expectations to 3 percent from prior expectations of 2 percent growth. It also raised its FY 2014 EPS guidance to a range between $6.70 and $6.80 from prior guidance of $6.50 to $6.75.
In Tuesday afternoon trade on the New York Stock Exchange, shares of LabCorp were up 4 percent at $107.70.