Lab Corp. (LH) Tops Q1 EPS by $1.36, Revenues Beat; Raises FY21 EPS Guidance

Lab Corp. (NYSE: LH) reported Q1 EPS of $8.79, $1.36 better than the analyst estimate of $7.43. Revenue for the quarter came in at $4.2 billion versus the consensus estimate of $3.91 billion.

Company Raises Full Year Guidance

• Revenue: Q1 of $4.2 billion, up from $2.8 billion last year
• Diluted EPS: Q1 of $7.82, up from ($3.27) last year
• Adjusted EPS: Q1 of $8.79, up from $2.37 last year
• Free Cash Flow: Q1 of $1.1 billion, up from $97 million last year
• Opened automated clinical trial kit production facility in Belgium
• Full Year 2021 Guidance: Revenue raised to 2.0% to 6.5%; Adjusted EPS raised to $20.00 to $24.00; Free Cash Flow raised to $1.8 billion to $2.0 billion

“We delivered very strong results in the first quarter driven by revenue growth across both our Diagnostics and Drug Development businesses,” said Adam H. Schechter, chairman and CEO, Labcorp. “Overall revenue in our base business grew 14.6% as people continued to return to their pre-pandemic healthcare routines and our biopharmaceutical clients resumed their important research and development. Our drug development pipeline remained robust, with a book-to-bill of 1.47 on a trailing twelve-month basis driven by strong demand across major therapeutic areas.”

In the quarter, Labcorp continued to bring science and technology innovations to market quickly to improve health and improve lives. The company opened a fully automated kit production facility in Belgium to support its Central Lab customers, ultimately improving access and cost efficiency for biopharma and clinical trial clients across Europe, the Middle East and Africa. In the fight against COVID-19, Labcorp expanded its work with the CDC to identify variants to the virus, and now offers Pixel by Labcorp COVID-19 home collection kits in thousands of pharmacies across the United States.

“We are pleased with our strong first quarter performance and improved outlook, and are raising our full year adjusted EPS guidance range to between $20.00 and $24.00. I am proud of our more than 70,000 employees and their commitment to our patients and customers during this pandemic and the difference they are making in the lives of people around the world,” said Schechter.

GUIDANCE:

Lab Corp. sees FY2021 EPS of $20.00-$24.00, versus the consensus of $21.32.

Labcorp is raising its 2021 full year guidance to reflect the improved recovery in the Diagnostics and Drug Development base businesses, while the COVID-19 Testing contribution remains within the original guidance range provided. The following guidance assumes foreign exchange rates effective as of March 31, 2021 for the remainder of the 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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