Healthcare diagnostics company Labcorp Holdings (NYSE: LH) will be reporting earnings this Thursday morning. Here’s what to expect.
Labcorp missed analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $3.35 billion, up 5.3% year on year. It was a softer quarter for the company, with a miss of analysts’ organic revenue estimates and full-year EPS guidance in line with analysts’ estimates.
Is Labcorp a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Labcorp’s revenue to grow 8.4% year on year to $3.49 billion, improving from the 6.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.16 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 6 downward revisions over the last 30 days (we track 11 analysts). 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 Q2 results, giving us a hint as to what we can expect. Quest delivered year-on-year revenue growth of 15.2%, beating analysts’ expectations by 1.4%, and Tenet Healthcare reported revenues up 3.3%, topping estimates by 2.3%.
Read our full analysis of Quest’s results here and Tenet Healthcare’s results here.
Investors in the healthcare providers & services segment have had steady hands going into earnings, with share prices flat over the last month. Labcorp is down 1.5% during the same time and is heading into earnings with an average analyst price target of $278.95 (compared to the current share price of $257.12).
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