Labcorp beats quarterly estimates on strong testing demand
25/04/2024 11:59
By Puyaan Singh
April 25 (Reuters) - Labcorp LH.N beat Wall Street
expectations for first-quarter profit on Thursday, as growing
demand for specialty tests boosted sales at its diagnostics
business.
Specialty testing, which includes cancer and prenatal tests,
have been growing at an accelerated pace, along with a steady
demand for routine tests, CEO Adam Schechter told Reuters.
More people in the United States, where Labcorp has more
than 2000 patient service centers, are catching up on medical
procedures and routine check-ups that were deferred due to
pandemic-driven restrictions.
The increased uptake of medical procedures has benefited
U.S.-based lab testing companies, including Labcorp's rival
Quest Diagnostics DGX.N , which raised its 2024 revenue and
profit forecast earlier this week betting on strong demand for
diagnostic tests.
Sales from the diagnostics unit - its biggest segment by
revenue - were $2.48 billion in the quarter ended March 31, up
4.2% from a year earlier.
The life sciences company narrowed its 2024 adjusted profit
forecast to between $14.45 and $15.35 per share from
$14.30-$15.40 per share.
At midpoint, the forecast is ahead of analysts profit
expectations of $14.82 per share, according to LSEG data.
On Wednesday, the company said it will acquire bankrupt
genetic test maker Invitae NVTAQ.PK for $239 million.
The Burlington, North Carolina-based company reported total
revenue of $3.18 billion, topping estimates of $3.12 billion.
On an adjusted basis, Labcorp reported first-quarter profit
of $3.68 per share, beating expectations of $3.48 per share.
The company is officially changing its name to Labcorp from
Laboratory Corporation of America from May 17.
(Reporting by Puyaan Singh in Bengaluru; Editing by Tasim
Zahid)
((Puyaan.Singh@thomsonreuters.com;))