Healthcare diagnostics company Labcorp Holdings (NYSE: LH) will be announcing earnings results this Thursday before market hours. Here’s what to look for.
Labcorp beat analysts’ revenue expectations last quarter, reporting revenues of $3.54 billion, up 5.8% year on year. It was a satisfactory quarter for the company, with a narrow beat of analysts’ full-year EPS guidance estimates but organic revenue in line with analysts’ estimates.
Is Labcorp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Labcorp’s revenue to grow 5.3% year on year, slowing from the 9.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Labcorp has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Labcorp’s peers in the healthcare providers & services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Quest delivered year-on-year revenue growth of 10.2%, beating analysts’ expectations by 2.3%, and NeoGenomics reported revenues up 11.2%, topping estimates by 2.2%. Quest traded up 8.6% following the results.
Read our full analysis of Quest’s results here and NeoGenomics’s results here.
There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 4.4% on average over the last month. Labcorp is up 12.5% during the same time and is heading into earnings with an average analyst price target of $312.35 (compared to the current share price of $314.40).
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