BURLINGTON – LabCorp(LH) on Thursday reported first-quarter net income of $769.6 million, after reporting a loss in the same period a year earlier. In fact the quarterly performance was so strong the life science services firm raised its expectations for earnings.
Noted Adam Schechter, chairman and CEO: “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 and $24. 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.”
That guidance is a full $1 higher per share than previously.
On a per-share basis, the Burlington-based company which has a large presence in the Research Triangle area said it had profit of $7.82. Earnings, adjusted for non-recurring costs, came to $8.79 per share.
The results beat Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $7.32 per share.
The medical laboratory operator posted revenue of $4.16 billion in the period, also surpassing Street forecasts. Seven analysts surveyed by Zacks expected $3.88 billion.
“We delivered very strong results in the first quarter driven by revenue growth across both our Diagnostics and Drug Development businesses,” Schechter said in a statement. “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.”
LabCorp expects full-year earnings in the range of $20 to $24 per share.
LabCorp shares have climbed 29% since the beginning of the year, while the S&P’s 500 index has risen 11%. The stock has climbed 49% in the last 12 months.
