NYSE$LH

Laboratory Corp Of America Holdings · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Labcorp's Q3 2022 results were announced, showing a decrease in revenue and earnings compared to the previous year, while strategic progress was made with the clinical development business spin-off and the establishment of a long-term relationship with Ascension.

Labcorp reported a decrease in revenue for Q3 2022, with $3.61 billion compared to $4.06 billion in Q3 2021. Diluted EPS decreased to $3.90 from $6.05, and adjusted EPS decreased to $4.68 from $6.82. The company is progressing with the spin-off of its Clinical Development business and has completed transactions to establish a long-term relationship with Ascension.

  • Revenue for Q3 2022 was $3.6 billion, a decrease of 11.2% compared to Q3 2021.
  • Diluted EPS for Q3 2022 was $3.90, compared to $6.05 in Q3 2021.
  • Adjusted EPS for Q3 2022 was $4.68, compared to $6.82 in Q3 2021.
  • Free cash flow for Q3 2022 was $270 million, compared to $650 million in Q3 2021.

Headline financials

Total Revenue

$3.61B

Previous: $4.06B-11.2%
EPS (adj)

$4.68

Previous: $6.82-31.4%
TTM Book-to-Bill

1.25

No prior period
Backlog

$15.3B

Previous: $14.4B+6.0%
Capital Expenditures

-$364M

Previous: -$310M-17.3%
Free Cash Flow

-$11.2M

Previous: $277M-104.0%
Net Income

$353M

Previous: $587M-39.9%
Operating Income

$469M

Previous: $767M-38.8%
Gross Profit

$1.06B

Previous: $1.39B-23.5%
Cash & Equivalents

$410M

Previous: $2.04B-79.9%
Total Assets

$19.8B

Previous: $20.9B-5.0%
Stock-Based Comp

$36.3M

Previous: $59M-38.5%

Revenue & EPS history

LabCorp · Revenue · Quarterly

$3.61B

Q3 2022-11.2%vs Q3 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

LabCorp · $3.61B total across 2 segments · Q3 2022

  • Diagnostics Laboratories
    $2.21B-15.7%
  • Biopharma Laboratory Services
    $1.41B-3.7%

Forward guidance

Labcorp is updating 2022 full year guidance to reflect its third quarter performance and fourth quarter outlook. The following guidance assumes foreign exchange rates effective as of September 30, 2022, for the remainder of the year. Enterprise level guidance includes the estimated impact from currently anticipated capital allocation, including acquisitions, share repurchases and dividends.

Tailwinds

  • Base Business Revenue Total Labcorp Enterprise to be between (6.0%) and (2.0%)
  • Base Business Revenue to be between 3.0% and 4.0%
  • COVID-19 Testing Revenue to be between (59.0%) and (57.0%)
  • Base Business Total Diagnostics to be between 6.0% and 7.0%
  • Adjusted EPS to be between $19.25 and $20.25

Headwinds

  • Revenue Total Labcorp Enterprise to be between (7.5%) and (6.0%)
  • COVID-19 Testing Revenue to be between (60.0%) and (50.0%)
  • Total Diagnostics to be between (11.5%) and (10.0%)
  • Total Drug Development to be between (2.5%) and (1.5%)
  • Free Cash Flow to be between $1.3 and $1.4

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 Q3 2022

Historical avgQ3 2022

-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

Earnings price reactions
QuarterReport dateReaction (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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