What Happened?
Shares of healthcare diagnostics company Labcorp Holdings (NYSE: LH) jumped 6.8% in the afternoon session after the company reported second-quarter earnings that beat analyst expectations and raised its full-year financial outlook. The laboratory network operator posted an adjusted EPS of $4.35, which surpassed consensus estimates. Revenue for the quarter increased 9.5% year-over-year to $3.53 billion, driven by growth in both its Diagnostics and Biopharma segments. In a significant show of confidence, Labcorp boosted its full-year 2025 guidance, projecting adjusted earnings per share between $16.05 and $16.50 and revenue growth between 7.5% and 8.6%. The company also noted that it had repurchased $200 million of its common stock during the quarter, further underscoring the strength of its financial position and business performance.
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What Is The Market Telling Us
Labcorp’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Labcorp is up 17.9% since the beginning of the year, and at $268.93 per share, has set a new 52-week high. Investors who bought $1,000 worth of Labcorp’s shares 5 years ago would now be looking at an investment worth $1,353.
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