NEW YORK (GenomeWeb) – Laboratory Corporation of America reported today that its second quarter revenues increased around 3 percent year over year as the firm beat Wall Street estimates on the top and bottom line.
The Burlington, NC-based clinical lab giant reported revenues of $1.52 billion for the three months ended June 30, up from $1.47 billion for Q2 2013. Analysts, on average, had estimated revenues of $1.50 billion.
LabCorp said that revenues were driven by a 5 percent increase in test volume year over year, though its revenue per requisition decreased 2 percent due to test and payer mix.
The firm posted net income of $141.3 million, or $1.64 per share, compared to $151.9 million, or $1.62 per share, for Q2 2013. On an adjusted basis, its EPS was $1.84, compared to $1.80 for Q2 2013 and above the consensus Wall Street estimate of $1.77.
"We are pleased with the strong volume growth in the quarter and the sequential stability of revenue per requisition, which has been under pressure due to mix," LabCorp Chairman and CEO David King said in a statement.
LabCorp reported SG&A expenses of $297.9 million for the quarter, an increase of 6 percent over Q2 2013 SG&A spending of $280.9 million.
The firm said that it expects FY 2014 revenue growth approximately 2 percent with adjusted EPS in a range of $6.50 to $6.75 — that's an increase from previous guidance of $6.40 to $6.70.
In Friday morning trade on the New York Stock Exchange, shares of LabCorp were down around 2 percent at $102.88.