Healthcare diagnostics company Labcorp Holdings (NYSE: LH) will be reporting results this Tuesday before market open. Here’s what to look for.
Labcorp beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $3.53 billion, up 9.5% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ full-year EPS guidance estimates but a slight miss of analysts’ organic revenue estimates.
Is Labcorp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Labcorp’s revenue to grow 8.4% year on year to $3.56 billion, in line with the 7.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.14 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Labcorp has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.8% on average.
Looking at Labcorp’s peers in the healthcare providers & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Quest delivered year-on-year revenue growth of 13.2%, beating analysts’ expectations by 3.3%, and Elevance Health reported revenues up 11%, in line with consensus estimates. Quest traded down 4.9% following the results while Elevance Health was also down 2.5%.
Read our full analysis of Quest’s results here and Elevance Health’s results here.
There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 7.6% on average over the last month. Labcorp is down 1.1% during the same time and is heading into earnings with an average analyst price target of $300 (compared to the current share price of $279.56).
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