BURLINGTON – Laboratory Corp. of America Holdings (LH) on Tuesday reported first-quarter earnings of $185.6 million.
On a per-share basis, the Burlington-based company said it had profit of $1.86. Earnings, adjusted for one-time gains and costs, were $2.62 per share.
The results beat Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $2.53 per share.
In premarket trading, LabCorp shares moved higher one percent to $156.50.
“During the quarter we delivered strong performance in both businesses, translating into solid revenue and earnings in light of the outsized impact of price reductions due to PAMA on our results,” said David P. King, chairman and CEO of LabCorp, in a statement.
PAMA refers to the Protecting Access to Medicare Act.
“Our Diagnostics business delivered a solid performance in light of PAMA, with organic growth in revenue and volume.,” King added.
“Covance grew revenue on a constant currency basis, expanded margins and continued to drive earnings. We deployed capital to share repurchase and several strategic acquisitions, further demonstrating our commitment to returning capital to shareholders and providing clients with innovative solutions that deliver value today and in the future. The value of our combination is increasingly apparent and we are well-positioned to drive growth in 2019 and the years to come.”
The medical laboratory operator posted revenue of $2.79 billion in the period, which fell short of Street forecasts. Eight analysts surveyed by Zacks expected $2.82 billion.
LabCorp expects full-year earnings in the range of $11.05 to $11.45 per share.
LabCorp shares have risen 23% since the beginning of the year, while the Standard & Poor’s 500 index has climbed 17%. The stock has declined 11% in the last 12 months.
