Lab Corp. (NYSE: LH) reported Q3 EPS of $2.74, $0.14 worse than the analyst estimate of $2.88. Revenue for the quarter came in at $2.8 billion versus the consensus estimate of $2.84 billion.

• Q3 revenue of $2.8 billion, up 8% over $2.6 billion last year
• Q3 diluted EPS of $3.10, which includes the net gain on the disposition of businesses of $1.22 per share
• Q3 adjusted EPS of $2.74, which was negatively impacted by approximately $0.10 per share from the ransomware attack and Hurricane Florence
• 2018 adjusted EPS guidance of $11.25 to $11.45, up 22% to 24% over 2017, which is negatively impacted by approximately $0.10 per share from the ransomware attack and Hurricane Florence
• 2018 free cash flow guidance of $975 million to $1,025 million, which now includes a fourth quarter tax payment of approximately $125 million related to the disposition of the Food Solutions business

“We are pleased with our performance in the quarter, highlighted by excellent results in our Covance Drug Development business and solid results in LabCorp Diagnostics,” said David P. King, chairman and chief executive officer. “Covance delivered growth in net orders, a strong book to bill and significant margin expansion, while Diagnostics continued its consistent organic revenue and volume growth. In addition, we made progress on our three strategic objectives, and initiated LaunchPad Phase II in Diagnostics to continue streamlining the business and reducing the fixed cost base. Despite the dynamically changing market, we have two strong businesses, outstanding cash flow and a strong balance sheet, positioning us well to deliver growth for the balance of this year and in the years ahead.”

GUIDANCE:

Lab Corp. sees FY2018 EPS of $11.25-$11.45, versus the consensus of $11.53.

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