We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
LabCorp (LH) Gives Update as Fortrea Spinoff Nears Closure
Read MoreHide Full Article
Laboratory Corporation of America Holdingsor LabCorp (LH - Free Report) recently stated the record and distribution dates for the planned spin-off of the company’s wholly-owned subsidiary, Fortrea Holdings.
The record date will be Jun 20, 2023 while the distribution date will be Jun 30, 2023.
LabCorp also noted that the spin-off is expected to be done through the distribution of 100% of the common stock of Fortrea to holders of LabCorp's common stock. LabCorp's stockholders will receive one share of Fortrea common stock for every share of LabCorp common stock they hold as of the record date.
Effective Jun 10, the U.S. Securities and Exchange Commission declared Fortrea's Registration Statement on Form 10. NASDAQ has approved the listing of Fortrea's common stock on the NASDAQ Stock Market under the ticker symbol FTRE.
Fortrea will hold Labcorp's Clinical Development and Commercialization Services businesses. The spin-off of these businesses can be attributed to the company’s decision to focus on high-growth businesses.
Image Source: Zacks Investment Research
A Few More Words on the Latest Spinoff
Fortrea, post the completion of the spin-off, will operate as a global contract research organization (CRO) that offers comprehensive drug and medical device development services. With more than 19,000 people, Fortrea will provide Phase I through IV clinical trial management and commercialization solutions to pharmaceutical and biotechnology organizations around the world.
Fortrea, as a leading, pure-play CRO, intends to help customers drive innovation and advance next-generation therapies for patients globally.
LabCorp’s Growth Strategy at a Glance
In its efforts to expand further, LabCorp is focusing more on high-growth opportunity areas such as neurodegenerative, autoimmune and liver disease as well as cell and gene therapy. In Oncology, a high-growth area, LabCorp continues to expand oncology capabilities to serve clinicians and drug development customers.
Meanwhile, the company’s drug development business is benefiting from collaborations with leading pharmaceutical and biotechnology companies with whom it started to work on potential antivirals, treatments and vaccines.
Share Price Performance
Over the past year, LabCorp has underperformed its industry. Shares of LabCorp have improved 0.5% compared to the industry’s 15.8% rise.
Penumbra’s stock has risen 139.2% in the past year. The Zacks Consensus Estimate for Penumbra’s earnings per share (EPS) has increased from $1.55 to $1.56 for 2023 and remained constant at $2.56 for 2024 in the past 30 days.
PEN’s earnings beat estimates in each of the trailing four quarters, the average surprise being 109.42%. In the last reported quarter, the company registered an earnings surprise of 109.09%.
The Zacks Consensus Estimate for Lantheus’ 2023 EPS has remained constant at $5.60 in the past 30 days. Shares of the company have improved 39% in the past year against the industry’s 27.6% decline.
LNTH’s earnings beat estimates in each of the trailing four quarters, the average surprise being 25.77%. In the last reported quarter, the company recorded an earnings surprise of 13.95%.
Estimates for Neuronetics’ loss per share have narrowed from $1.32 to $1.29 for 2023 in the past 30 days. Shares of the company have declined 30.4% in the past year against the industry’s 6.7% growth.
STIM’s earnings beat estimates in each of the trailing four quarters, the average surprise being 19.61%. In the last reported quarter, Neuronetics delivered an earnings surprise of 2.56%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
LabCorp (LH) Gives Update as Fortrea Spinoff Nears Closure
Laboratory Corporation of America Holdingsor LabCorp (LH - Free Report) recently stated the record and distribution dates for the planned spin-off of the company’s wholly-owned subsidiary, Fortrea Holdings.
The record date will be Jun 20, 2023 while the distribution date will be Jun 30, 2023.
LabCorp also noted that the spin-off is expected to be done through the distribution of 100% of the common stock of Fortrea to holders of LabCorp's common stock. LabCorp's stockholders will receive one share of Fortrea common stock for every share of LabCorp common stock they hold as of the record date.
Effective Jun 10, the U.S. Securities and Exchange Commission declared Fortrea's Registration Statement on Form 10. NASDAQ has approved the listing of Fortrea's common stock on the NASDAQ Stock Market under the ticker symbol FTRE.
Fortrea will hold Labcorp's Clinical Development and Commercialization Services businesses. The spin-off of these businesses can be attributed to the company’s decision to focus on high-growth businesses.
Image Source: Zacks Investment Research
A Few More Words on the Latest Spinoff
Fortrea, post the completion of the spin-off, will operate as a global contract research organization (CRO) that offers comprehensive drug and medical device development services. With more than 19,000 people, Fortrea will provide Phase I through IV clinical trial management and commercialization solutions to pharmaceutical and biotechnology organizations around the world.
Fortrea, as a leading, pure-play CRO, intends to help customers drive innovation and advance next-generation therapies for patients globally.
LabCorp’s Growth Strategy at a Glance
In its efforts to expand further, LabCorp is focusing more on high-growth opportunity areas such as neurodegenerative, autoimmune and liver disease as well as cell and gene therapy. In Oncology, a high-growth area, LabCorp continues to expand oncology capabilities to serve clinicians and drug development customers.
Meanwhile, the company’s drug development business is benefiting from collaborations with leading pharmaceutical and biotechnology companies with whom it started to work on potential antivirals, treatments and vaccines.
Share Price Performance
Over the past year, LabCorp has underperformed its industry. Shares of LabCorp have improved 0.5% compared to the industry’s 15.8% rise.
Zacks Rank and Key Picks
The stock carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the overall healthcare sector are Penumbra (PEN - Free Report) , Lantheus (LNTH - Free Report) and Neuronetics (STIM - Free Report) . While Penumbra and Lantheus sport a Zacks Rank #1 (Strong Buy), Neuronetics carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Penumbra’s stock has risen 139.2% in the past year. The Zacks Consensus Estimate for Penumbra’s earnings per share (EPS) has increased from $1.55 to $1.56 for 2023 and remained constant at $2.56 for 2024 in the past 30 days.
PEN’s earnings beat estimates in each of the trailing four quarters, the average surprise being 109.42%. In the last reported quarter, the company registered an earnings surprise of 109.09%.
The Zacks Consensus Estimate for Lantheus’ 2023 EPS has remained constant at $5.60 in the past 30 days. Shares of the company have improved 39% in the past year against the industry’s 27.6% decline.
LNTH’s earnings beat estimates in each of the trailing four quarters, the average surprise being 25.77%. In the last reported quarter, the company recorded an earnings surprise of 13.95%.
Estimates for Neuronetics’ loss per share have narrowed from $1.32 to $1.29 for 2023 in the past 30 days. Shares of the company have declined 30.4% in the past year against the industry’s 6.7% growth.
STIM’s earnings beat estimates in each of the trailing four quarters, the average surprise being 19.61%. In the last reported quarter, Neuronetics delivered an earnings surprise of 2.56%.