Labcorp Q3 revenue beats on organic growth, operating efficiencies
Overview
Global lab services provider's Q3 revenue rose 6.9% yr/yr, beating analyst expectations
Adjusted EPS for Q3 rose 14.5% yr/yr
Company raised full-year 2026 revenue growth and adjusted EPS guidance
Outlook
Labcorp raises 2026 revenue growth outlook to 5.9%-6.7% and adj EPS to $18.30-$18.70
Company expects 2026 Biopharma Laboratory Services revenue growth of 7.4%-8.4%
Labcorp sees 2026 Diagnostics Laboratories revenue growth of 5.5%-6.2%
Result Drivers
ORGANIC GROWTH & OPERATING EFFICIENCIES - Co attributed higher adjusted operating income and margin to organic growth and operating efficiencies
ACQUISITIONS - Co said recent acquisitions are expected to contribute to adjusted EPS and long-term growth
SPECIALTY TESTING EXPANSION - Co launched new specialty tests and expanded access through acquisitions
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $3.81 bln | $3.76 bln (12 Analysts) |
Q3 Adj EPS from Cont Ops | $4.78 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the healthcare facilities & services peer group is "buy"
Wall Street's median 12-month price target for Labcorp Holdings Inc. is $355.00, about 7.2% above its October 27 closing price of $331.17
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)