Lab Corp. (LH) Tops Q4 EPS by $2.45, Revenues Beat; Offers FY21 EPS Mid-Point Above Consensus

Lab Corp. (NYSE: LH) reported Q4 EPS of $10.56, $2.45 better than the analyst estimate of $8.11. Revenue for the quarter came in at $4.5 billion versus the consensus estimate of $3.95 billion.

• Revenue: Q4 of $4.5 billion, up from $3.0 billion last year; Full year of $14.0 billion, up from $11.6 billion last year
• Diluted EPS: Q4 of $9.54, up from $2.32 last year; Full year of $15.88, up from $8.35 last year
• Adjusted EPS: Q4 of $10.56, up from $2.86 last year; Full year of $23.94, up from $11.32 last year
• Free Cash Flow: Q4 of $675 million, up from $442 million last year; Full year of $1.8 billion, up from $1.0 billion last year
• Q4 COVID-19 Testing Innovations: First FDA EUA at-home PCR collection kit without a prescription; first to make FDA EUA semi-quantitative antibody test available in the U.S.; first with FDA EUA for high-throughput method using heat extraction
• Scaled genetic sequencing program with the CDC to identify COVID-19 variants

“Labcorp’s science and innovation throughout the pandemic led to strong performance in the quarter and for the full year. In addition to our leadership in testing, our capabilities are being leveraged to identify variants to the virus through genetic sequencing and to support biotechnology and pharmaceutical companies in developing new therapies and vaccines to fight COVID-19,” said Adam Schechter, chairman and CEO, Labcorp.

“We are encouraged about the future of our base business. In the fourth quarter, our base diagnostics business continued to improve as more people focused on managing their health and chronic conditions. Our drug development business also grew and delivered strong quarterly performance, with a book-to-bill of 1.43 on a trailing twelve-month basis driven by strong demand across therapeutic areas.

I want to thank our over 75,000 employees worldwide who have tirelessly served our clients and patients during the pandemic. We are entering 2021 with a renewed commitment to advancing health on a global basis.”

GUIDANCE:

Lab Corp. sees FY2021 EPS of $19.00-$23.00, versus the consensus of $20.14.

The following guidance assumes foreign exchange rates effective as of December 31, 2020 for the full year. Enterprise level guidance includes the estimated impact from currently anticipated capital allocation, including acquisitions and share repurchases.

For earnings history and earnings-related data on Lab Corp. (LH) click here.

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