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LabCorp (LH) to Report Q2 Earnings: What's in the Cards?
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Laboratory Corporation of America Holdings (LH - Free Report) , also known as LabCorp, is slated to report second-quarter 2023 results on Jul 27, before market open.
In the last reported quarter, the company’s adjusted earnings of $3.82 missed the Zacks Consensus Estimate by 4.3%. The company beat estimates in two of the trailing four quarters and missed in two, the average surprise being 0.82%.
Factors at Play
Similar to the past few quarters, LabCorp is expected to have benefited from an ongoing sales rebound in its legacy Diagnostics business, driven by routine and esoteric testing and a benefit from hospital deals. The company’s Covance Drug Development business is likely to have benefited in the first quarter from continued growth momentum in drug development orders. Per our model, LabCorp’s Diagnostic’s business revenues are projected at $2.26 billion in the second quarter, suggesting a 0.2% growth year over year.
In May 2023, LabCorp and BML announced the expansion of clinical laboratory testing capabilities in Japan. The new facility enhances the company’s central laboratory presence and drug development capabilities in Japan. In April 2023, LabCorp and the Conference of National Black Churches (CNBC) collaborated to address the health equity gaps in colorectal cancer screening. In order to raise awareness and improve access to colorectal cancer screening tests. We believe these partnerships are likely to have contributed to the company’s second-quarter performance.
During the first quarter, the company noted that it has made progress in expanding its digital health platform LabCorp OnDemand. During the first quarter, the company launched three new tests, including a PSA prostate cancer screening test, a hepatitis B immunity test and a fatigue test for people with chronic fatigue systems, including post-COVID fatigue. We believe these developments to have contributed to LabCorp’s first-quarter revenues significantly.
Within the oncology business, the company continues to deepen its leadership position by expanding its cancer-related diagnostic screening and testing portfolio and by partnering with its pharmaceutical clients. During the first quarter, LabCorp partnered with ImmunoGen on an Immunohistochemistry sponsored testing program to enhance access for patients with ovarian cancer. LabCorp added HER2 low reporting to the IHC test for breast cancer — the only FDA-approved companion diagnostic of HER2 low status for patients with metastatic breast cancer.
Laboratory Corporation of America Holdings Price and EPS Surprise
LabCorp also entered into a strategic collaboration with VieCure to provide clinicians greater access to precision oncology decision support. We believe these major developments within Oncology to have benefited the company in the to-be-reported quarter, backed by strong market adoption.
However, within LabCorp Diagnostics, a slowdown in COVID-19 testing is likely to have hampered sales performance within the segment. This is expected to get reflected in its second-quarter earnings performance.
Within the Drug Development segment, in first-quarter 2023, LabCorp reported a strong trailing 12-month book-to-bill of 1.27 with Drug Development. We believe this momentum to continue in drug development orders during the second quarter of 2023 as well, thus adding to the top line. Similar to the last reported quarter, the Drug Development segment’s growth is expected to have been offset by NHP related constraints, reduced COVID vaccine and therapeutic work, and the FSP contract loss. Per our model, LabCorp’s Drug Development’s business revenues are expected to be $1.52 billion for the second quarter, indicating a 4.5% growth year over year.
Earnings Whisper
The Zacks Consensus Estimate for second-quarter earnings of $4.21 per share implies a 15.12% plunge from the year-ago reported figure. The consensus estimate for revenues is pegged at $3.77 billion, suggesting a 2.1% rise from the prior-year reported number.
What Our Model Suggests
Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a higher chance of beating estimates. However, that is not the case here as you can see:
Earnings ESP: The company has an Earnings ESP of -1.96%. 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 #2.
TG Therapeutics has an expected earnings growth rate of 37.7% for 2023. TGTX’s 2023 projected revenues of $87.65 million indicate an increase from the year-ago reported figure of $2.8 million.
Dentsply Sirona (XRAY - Free Report) has an Earnings ESP of +3.39% and a Zacks Rank of #2. Dentsply Sirona is scheduled to release second-quarter fiscal 2023 results on Aug 3.
XRAY’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other, the average beat being 10.47%. XRAY’s long-term expected growth rate is estimated to be 9.3%.
SiBone (SIBN - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #2. SiBone is scheduled to release second-quarter 2023 results on Aug 7.
SIBN’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, with the average surprise being 11.11%. The Zacks Consensus Estimate for SIBN’s second-quarter EPS indicates a 22.2% improvement from the year-ago reported figure.
Image: Bigstock
LabCorp (LH) to Report Q2 Earnings: What's in the Cards?
Laboratory Corporation of America Holdings (LH - Free Report) , also known as LabCorp, is slated to report second-quarter 2023 results on Jul 27, before market open.
In the last reported quarter, the company’s adjusted earnings of $3.82 missed the Zacks Consensus Estimate by 4.3%. The company beat estimates in two of the trailing four quarters and missed in two, the average surprise being 0.82%.
Factors at Play
Similar to the past few quarters, LabCorp is expected to have benefited from an ongoing sales rebound in its legacy Diagnostics business, driven by routine and esoteric testing and a benefit from hospital deals. The company’s Covance Drug Development business is likely to have benefited in the first quarter from continued growth momentum in drug development orders. Per our model, LabCorp’s Diagnostic’s business revenues are projected at $2.26 billion in the second quarter, suggesting a 0.2% growth year over year.
In May 2023, LabCorp and BML announced the expansion of clinical laboratory testing capabilities in Japan. The new facility enhances the company’s central laboratory presence and drug development capabilities in Japan. In April 2023, LabCorp and the Conference of National Black Churches (CNBC) collaborated to address the health equity gaps in colorectal cancer screening. In order to raise awareness and improve access to colorectal cancer screening tests. We believe these partnerships are likely to have contributed to the company’s second-quarter performance.
During the first quarter, the company noted that it has made progress in expanding its digital health platform LabCorp OnDemand. During the first quarter, the company launched three new tests, including a PSA prostate cancer screening test, a hepatitis B immunity test and a fatigue test for people with chronic fatigue systems, including post-COVID fatigue. We believe these developments to have contributed to LabCorp’s first-quarter revenues significantly.
Within the oncology business, the company continues to deepen its leadership position by expanding its cancer-related diagnostic screening and testing portfolio and by partnering with its pharmaceutical clients. During the first quarter, LabCorp partnered with ImmunoGen on an Immunohistochemistry sponsored testing program to enhance access for patients with ovarian cancer. LabCorp added HER2 low reporting to the IHC test for breast cancer — the only FDA-approved companion diagnostic of HER2 low status for patients with metastatic breast cancer.
Laboratory Corporation of America Holdings Price and EPS Surprise
Laboratory Corporation of America Holdings price-eps-surprise | Laboratory Corporation of America Holdings Quote
LabCorp also entered into a strategic collaboration with VieCure to provide clinicians greater access to precision oncology decision support. We believe these major developments within Oncology to have benefited the company in the to-be-reported quarter, backed by strong market adoption.
However, within LabCorp Diagnostics, a slowdown in COVID-19 testing is likely to have hampered sales performance within the segment. This is expected to get reflected in its second-quarter earnings performance.
Within the Drug Development segment, in first-quarter 2023, LabCorp reported a strong trailing 12-month book-to-bill of 1.27 with Drug Development. We believe this momentum to continue in drug development orders during the second quarter of 2023 as well, thus adding to the top line. Similar to the last reported quarter, the Drug Development segment’s growth is expected to have been offset by NHP related constraints, reduced COVID vaccine and therapeutic work, and the FSP contract loss. Per our model, LabCorp’s Drug Development’s business revenues are expected to be $1.52 billion for the second quarter, indicating a 4.5% growth year over year.
Earnings Whisper
The Zacks Consensus Estimate for second-quarter earnings of $4.21 per share implies a 15.12% plunge from the year-ago reported figure. The consensus estimate for revenues is pegged at $3.77 billion, suggesting a 2.1% rise from the prior-year reported number.
What Our Model Suggests
Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a higher chance of beating estimates. However, that is not the case here as you can see:
Earnings ESP: The company has an Earnings ESP of -1.96%. 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 #2.
Stocks Worth a Look
TG Therapeutics (TGTX - Free Report) has an Earnings ESP of +12.00% and a Zacks Rank of #1. The company is expected to release second-quarter 2023 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.
TG Therapeutics has an expected earnings growth rate of 37.7% for 2023. TGTX’s 2023 projected revenues of $87.65 million indicate an increase from the year-ago reported figure of $2.8 million.
Dentsply Sirona (XRAY - Free Report) has an Earnings ESP of +3.39% and a Zacks Rank of #2. Dentsply Sirona is scheduled to release second-quarter fiscal 2023 results on Aug 3.
XRAY’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other, the average beat being 10.47%. XRAY’s long-term expected growth rate is estimated to be 9.3%.
SiBone (SIBN - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #2. SiBone is scheduled to release second-quarter 2023 results on Aug 7.
SIBN’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, with the average surprise being 11.11%. The Zacks Consensus Estimate for SIBN’s second-quarter EPS indicates a 22.2% improvement from the year-ago reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.