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LabCorp Posts 1 Percent Q2 Revenue Growth

NEW YORK (GenomeWeb News) – Laboratory Corporation of America today reported revenue growth of 1 percent for the second quarter of 2012, missing analysts' consensus estimate on the top line.

The Burlington, NC-based clinical lab firm reported total revenues of $1.42 billion for the three-month period ended June 30, compared to $1.40 billion for the second quarter of 2011. It fell short of Wall Street's consensus revenues estimate of $1.44 billion.

LabCorp said that testing volume in the quarter was essentially flat, while revenue-per-requisition increased 1.5 percent.

In a statement accompanying the results, LabCorp Chairman and CEO David King said that the firm continues to face a "low-volume-growth environment."

LabCorp's net income for the quarter was $153.8 million, or $1.77 per share on an adjusted basis, compared to $126.7 million, or $1.64 per share on an adjusted basis, for Q2 2011. It met analysts' expectations for the bottom line.

The firm finished the quarter with $124.4 million in cash and short-term investments.

LabCorp also lowered the top end of its revenue guidance. It now expects FY 2012 revenue growth of 2 to 3 percent. Its previous guidance was for revenue growth of between 2 percent and 3.5 percent. The firm expects to report adjusted EPS excluding amortization in the range of $6.80 to $7.00.

It expects the acquisition of Genzyme Genetics, which it purchased in late 2010 for $925 million, to be slightly accretive to its 2012 earnings.

In early Thursday trade on the New York Stock Exchange, shares of LabCorp were down 7 percent at $87.11.

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