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Labcorp (LH) to Report Q1 Earnings: What's in the Cards?
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Laboratory Corporation of America Holdings (LH - Free Report) , or Labcorp, is slated to report first-quarter 2024 results on Apr 25 before market open.
In the last reported quarter, the company’s adjusted earnings of $3.30 topped the Zacks Consensus Estimate by 0.30%. Labcorp surpassed estimates in two of the trailing four quarters and missed in the other two, the average negative surprise being 1.28%.
Factors at Play
Over the last several quarters, the downturn in COVID-19 testing revenues has continued to impact Labcorp’s overall revenue growth and other important metrics. This trend is likely to have persisted in the first quarter of 2024 as well.
On a positive note, LH entered 2024 with a strong foundation and momentum following the successful integration of several hospital partnerships, including Ascension and the spin-off of Fortrea. In the first quarter, Labcorp’s Biopharma Laboratory Service business is likely to have delivered a robust performance, backed by the continued strength of its largest segment, the Central Laboratories. The Diagnostics Laboratories segment may have also experienced strong base business growth, favorably contributing to the company’s overall revenues.
In the to-be-reported quarter, Labcorp is likely to have continued benefiting from its health systems and regional local lab partnership strategy. The company recently entered into an agreement to acquire BioReference Health's laboratory testing businesses, which focuses on clinical diagnostics and reproductive and women's health across the United States, outside of New York and New Jersey.
Moreover, strategic moves like partnerships with Baystate Health and Legacy Health have solidified its status as a partner of choice with several new health systems and regional local laboratories. These developments are expected to be positively reflected in the company’s top line in the first quarter of 2024.
Furthermore, we expect Labcorp to have achieved growth through advancements in science, technology and innovation. The recent addition of the pTau217 (phosphorylated tau 217) test further expands the company’s leadership in testing options for Alzheimer's disease to improve patient care. Labcorp was the first company to offer an ATN (Amyloid-Tau-Neurodegeneration) profile, which uses a trio of blood biomarkers to detect the hallmarks of Alzheimer's disease.
Another strategic collaboration with Hawthorne Effect, announced in January 2024, may have helped improve patient experience, accessibility and efficiency in decentralized clinical trials. In the same month, Labcorp introduced a new, FDA-cleared blood test for risk assessment and clinical management of severe preeclampsia in pregnant women. The company’s new sample testing application aims to provide its customers with enhanced near real-time visibility of specimens within the Central Lab. These positive developments are likely to have favored Labcorp’s revenues in the first quarter of 2024.
We also expect the company to have maintained its focus and leadership in higher growth areas such as oncology, women's health, autoimmune disease and neurology. In the first quarter of 2024, Labcorp may have further continued to develop, license and ultimately scale specialty testing, including Companion Diagnostics. By leveraging its scale, the company is likely to have expanded its specialty testing to other parts of the world, such as enabling central laboratories in China and Geneva to perform liquid biopsy tests for clinical trials. All these are likely to have helped drive a positive top-line performance in the to-be-reported quarter.
Compared to the fourth quarter of 2023, the Zacks Consensus Estimate for the company’s Diagnostics Laboratories and Biopharma Laboratory Services business revenues suggests an improvement of 3.2% and 0.3%, respectively, in the first quarter of 2024.
Q1 Estimates
The Zacks Consensus Estimate for LH’s first-quarter 2024 revenues is pegged at $3.13 billion. The consensus estimate for earnings per share stands at $3.47.
What Our Model Suggests
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is the case here.
Earnings ESP: Labcorp has an Earnings ESP of +0.78%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are some other medical stocks worth considering as these also have the right combination of elements to post an earnings beat this quarter:
TransMedics has an expected earnings growth rate of 81.8% for 2024. TMDX surpassed earnings in each of the trailing four quarters, the average being 107.83%.
Inspire Medical Systems (INSP - Free Report) has an Earnings ESP of +18.04% and a Zacks Rank #1. The company is set to release first-quarter 2024 results on May 7.
INSP has an expected long-term earnings growth rate of 51.4% compared to the S&P 500’s 17.1%. The company surpassed earnings in each of the trailing four quarters, the average being 353.55%.
Insulet (PODD - Free Report) currently has an Earnings ESP of +11.11% and a Zacks Rank #2. The company is set to release its first-quarter 2024 results on May 9.
PODD has an expected long-term earnings growth rate of 18.1% compared to the industry’s 11.4%. The company surpassed earnings in each of the trailing four quarters, the average being 100.09%.
Image: Bigstock
Labcorp (LH) to Report Q1 Earnings: What's in the Cards?
Laboratory Corporation of America Holdings (LH - Free Report) , or Labcorp, is slated to report first-quarter 2024 results on Apr 25 before market open.
In the last reported quarter, the company’s adjusted earnings of $3.30 topped the Zacks Consensus Estimate by 0.30%. Labcorp surpassed estimates in two of the trailing four quarters and missed in the other two, the average negative surprise being 1.28%.
Factors at Play
Over the last several quarters, the downturn in COVID-19 testing revenues has continued to impact Labcorp’s overall revenue growth and other important metrics. This trend is likely to have persisted in the first quarter of 2024 as well.
On a positive note, LH entered 2024 with a strong foundation and momentum following the successful integration of several hospital partnerships, including Ascension and the spin-off of Fortrea. In the first quarter, Labcorp’s Biopharma Laboratory Service business is likely to have delivered a robust performance, backed by the continued strength of its largest segment, the Central Laboratories. The Diagnostics Laboratories segment may have also experienced strong base business growth, favorably contributing to the company’s overall revenues.
In the to-be-reported quarter, Labcorp is likely to have continued benefiting from its health systems and regional local lab partnership strategy. The company recently entered into an agreement to acquire BioReference Health's laboratory testing businesses, which focuses on clinical diagnostics and reproductive and women's health across the United States, outside of New York and New Jersey.
Labcorp Price and EPS Surprise
Labcorp price-eps-surprise | Labcorp Quote
Moreover, strategic moves like partnerships with Baystate Health and Legacy Health have solidified its status as a partner of choice with several new health systems and regional local laboratories. These developments are expected to be positively reflected in the company’s top line in the first quarter of 2024.
Furthermore, we expect Labcorp to have achieved growth through advancements in science, technology and innovation. The recent addition of the pTau217 (phosphorylated tau 217) test further expands the company’s leadership in testing options for Alzheimer's disease to improve patient care. Labcorp was the first company to offer an ATN (Amyloid-Tau-Neurodegeneration) profile, which uses a trio of blood biomarkers to detect the hallmarks of Alzheimer's disease.
Another strategic collaboration with Hawthorne Effect, announced in January 2024, may have helped improve patient experience, accessibility and efficiency in decentralized clinical trials. In the same month, Labcorp introduced a new, FDA-cleared blood test for risk assessment and clinical management of severe preeclampsia in pregnant women. The company’s new sample testing application aims to provide its customers with enhanced near real-time visibility of specimens within the Central Lab. These positive developments are likely to have favored Labcorp’s revenues in the first quarter of 2024.
We also expect the company to have maintained its focus and leadership in higher growth areas such as oncology, women's health, autoimmune disease and neurology. In the first quarter of 2024, Labcorp may have further continued to develop, license and ultimately scale specialty testing, including Companion Diagnostics. By leveraging its scale, the company is likely to have expanded its specialty testing to other parts of the world, such as enabling central laboratories in China and Geneva to perform liquid biopsy tests for clinical trials. All these are likely to have helped drive a positive top-line performance in the to-be-reported quarter.
Compared to the fourth quarter of 2023, the Zacks Consensus Estimate for the company’s Diagnostics Laboratories and Biopharma Laboratory Services business revenues suggests an improvement of 3.2% and 0.3%, respectively, in the first quarter of 2024.
Q1 Estimates
The Zacks Consensus Estimate for LH’s first-quarter 2024 revenues is pegged at $3.13 billion. The consensus estimate for earnings per share stands at $3.47.
What Our Model Suggests
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is the case here.
Earnings ESP: Labcorp has an Earnings ESP of +0.78%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are some other medical stocks worth considering as these also have the right combination of elements to post an earnings beat this quarter:
TransMedics Group (TMDX - Free Report) has an Earnings ESP of +60.00% and a Zacks Rank #1. The company is expected to release first-quarter 2024 results on May 6. You can see the complete list of today’s Zacks #1 Rank stocks here.
TransMedics has an expected earnings growth rate of 81.8% for 2024. TMDX surpassed earnings in each of the trailing four quarters, the average being 107.83%.
Inspire Medical Systems (INSP - Free Report) has an Earnings ESP of +18.04% and a Zacks Rank #1. The company is set to release first-quarter 2024 results on May 7.
INSP has an expected long-term earnings growth rate of 51.4% compared to the S&P 500’s 17.1%. The company surpassed earnings in each of the trailing four quarters, the average being 353.55%.
Insulet (PODD - Free Report) currently has an Earnings ESP of +11.11% and a Zacks Rank #2. The company is set to release its first-quarter 2024 results on May 9.
PODD has an expected long-term earnings growth rate of 18.1% compared to the industry’s 11.4%. The company surpassed earnings in each of the trailing four quarters, the average being 100.09%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.