NYSE$LH
Laboratory Corp Of America Holdings · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Labcorp's financial performance was impacted by a decline in COVID-19 testing revenue, which was partially offset by growth in the base business. The company is on track to spin off its Clinical Development business (Fortrea) by mid-year and updated its full-year guidance.
Labcorp's first quarter results showed a decrease in revenue and earnings compared to the previous year, primarily due to a decline in COVID-19 testing. However, the company's base business experienced growth, and it is progressing with the spin-off of its Clinical Development business. The company updated its full-year guidance for adjusted EPS and free cash flow.
- First quarter Base Business revenue grew 10%, while total revenue and earnings were down due to COVID-19 Testing.
- Revenue for Q1 was $3.78 billion, compared to $3.90 billion last year.
- Diluted EPS for Q1 was $2.39, versus $5.23 last year; Adjusted EPS for Q1 was $3.82, versus $6.11 last year.
- Free Cash Flow for Q1 was $27 million, compared to $239 million last year.
Headline financials
Revenue & EPS history
LabCorp · Revenue · Quarterly
$3.78B
Revenue by segment
LabCorp · $3.78B total across 2 segments · Q1 2023
- Diagnostics Laboratories$2.38B-2.9%63.0%
- Biopharma Laboratory Services$1.4B-4.1%37.0%
Forward guidance
Labcorp is updating 2023 full year guidance to reflect its first quarter performance and full year outlook. Adjusted EPS narrowed to $16.25 to $17.75 with midpoint unchanged and Free Cash Flow remains at $1.0 billion to $1.2 billion.
Tailwinds
- Total Labcorp Enterprise revenue is expected to be between $14.9 billion.
- Base Business revenue is expected to grow between 9.5% and 11.0%.
- Total Diagnostics revenue is expected to grow between -0.5% and 2.0%.
- Base Business revenue is expected to grow between 12.5% and 14.0%.
- Total Drug Development revenue is expected to grow between 3.5% and 5.5%.
Headwinds
- COVID-19 Testing revenue is expected to decline between (90.0%) and (80.0%).
- Total Labcorp Enterprise revenue previous guidance was between 1.5% and 4.0%, updated guidance is between 1.5% and 4.0%.
- Base Business revenue previous guidance was between 8.5% and 10.5%, updated guidance is between 9.5% and 11.0%.
- COVID-19 Testing revenue previous guidance was between (90.0%) and (75.0%), updated guidance is between (90.0%) and (80.0%).
- Total Diagnostics revenue previous guidance was between (2.0%) and 1.5%, updated guidance is between (0.5%) and 2.0%.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2023
-0.3%
Avg return
Earnings day
-0.6%
Avg return
5 days after
-0.9%
Avg return
30 days after
48%
35 / 73 earnings
Positive
+9.5%
Q2 2024
Best reaction
-10.4%
Q3 2016
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -3.0% | +0.0% | +1.3% | |
| Q4 2025 | -2.1% | +0.0% | -6.6% | |
| Q3 2025 | -5.7% | -7.9% | -2.7% | |
| Q2 2025 | -0.5% | +1.2% | +2.0% | |
| Q1 2025 | +4.7% | +7.9% | +7.5% | |
| Q4 2024 | -0.9% | -1.9% | +1.2% | |
| Q3 2024 | +4.0% | +3.7% | +9.0% | |
| Q2 2024 | +9.5% | +4.8% | +6.7% | |
| Q1 2024 | -4.6% | -3.2% | -4.0% | |
| Q4 2023 | -5.0% | -5.5% | -8.3% | |
| Q3 2023 | +0.6% | +1.0% | +7.6% | |
| Q2 2023 | -1.9% | -2.4% | -3.0% | |
| Q1 2023 | -4.6% | -2.5% | -8.2% | |
| Q4 2022 | +3.2% | -0.4% | -14.1% | |
| Q3 2022 | -2.5% | -3.2% | +5.0% | |
| Q2 2022 | +5.1% | +1.2% | -8.1% | |
| Q1 2022 | -5.0% | -3.1% | +1.9% | |
| Q4 2021 | -1.9% | -6.0% | -5.7% | |
| Q3 2021 | +2.3% | +2.0% | +3.1% | |
| Q2 2021 | +4.6% | +6.0% | +6.1% | |
| Q1 2021 | +1.2% | +4.1% | +4.5% | |
| Q4 2020 | +4.0% | +3.1% | +4.1% | |
| Q3 2020 | +1.0% | -1.1% | -2.7% | |
| Q2 2020 | -3.3% | -4.2% | -13.4% | |
| Q1 2020 | -6.5% | -10.4% | -0.4% | |
| Q4 2019 | +4.1% | +1.8% | -19.5% | |
| Q3 2019 | -2.0% | -2.3% | +0.4% | |
| Q2 2019 | -6.5% | -4.2% | -6.9% | |
| Q1 2019 | +3.7% | +6.1% | +5.1% | |
| Q4 2018 | +2.5% | +3.8% | +3.7% | |
| Q3 2018 | -7.1% | -6.2% | -4.1% | |
| Q2 2018 | -5.4% | -6.4% | -5.3% | |
| Q1 2018 | +3.9% | +2.8% | +9.7% | |
| Q4 2017 | +3.9% | +3.0% | +5.9% | |
| Q3 2017 | +1.7% | +2.2% | +0.2% | |
| Q2 2017 | +2.0% | +1.3% | -1.4% | |
| Q1 2017 | -4.1% | -3.1% | -1.9% | |
| Q4 2016 | +2.4% | +2.4% | +5.4% | |
| Q3 2016 | -10.4% | -9.4% | -7.9% | |
| Q2 2016 | +0.4% | +1.2% | -1.4% | |
| Q1 2016 | +4.1% | — | — | |
| Q4 2015 | +2.8% | — | — | |
| Q3 2015 | +7.8% | — | — | |
| Q2 2015 | +3.8% | — | — | |
| Q1 2015 | -2.7% | — | — | |
| Q4 2014 | +4.9% | — | — | |
| Q3 2014 | +3.5% | — | — | |
| Q2 2014 | -0.5% | — | — | |
| Q1 2014 | -0.7% | — | — | |
| Q4 2013 | +1.1% | — | — | |
| Q3 2013 | -3.2% | — | — | |
| Q2 2013 | +0.0% | — | — | |
| Q1 2013 | +0.7% | — | — | |
| Q4 2012 | -1.7% | — | — | |
| Q3 2012 | -4.0% | — | — | |
| Q2 2012 | -9.0% | — | — | |
| Q1 2012 | -3.4% | — | — | |
| Q4 2011 | +2.2% | — | — | |
| Q3 2011 | -6.6% | — | — | |
| Q2 2011 | -0.6% | — | — | |
| Q1 2011 | +1.4% | — | — | |
| Q4 2010 | -0.2% | — | — | |
| Q4 2007 | -0.2% | — | — | |
| Q3 2010 | +1.6% | — | — | |
| Q2 2010 | +0.9% | — | — | |
| Q1 2009 | +1.8% | — | — | |
| Q1 2010 | +1.6% | — | — | |
| Q4 2009 | -0.4% | — | — | |
| Q2 2008 | -1.6% | — | — | |
| Q3 2009 | -1.6% | — | — | |
| Q3 2008 | -1.6% | — | — | |
| Q4 2008 | -1.4% | — | — | |
| Q2 2009 | -1.4% | — | — |
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