NYSE$LH

Laboratory Corp Of America Holdings · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Labcorp's Q4 2020 results were announced, highlighted by significant revenue and EPS growth driven by COVID-19 testing and base business improvement.

Labcorp announced strong Q4 2020 results with a 52% increase in revenue to $4.5 billion and a significant rise in diluted EPS to $9.54, driven by COVID-19 testing and improvements in the base business. The company also provided full year 2021 guidance, expecting adjusted EPS between $19.00 and $23.00 and free cash flow between $1.7 billion and $1.9 billion.

  • Revenue increased to $4.5 billion, up 52% from the previous year, driven by organic growth and COVID-19 testing.
  • Diluted EPS rose to $9.54, a significant increase from $2.32 in the same quarter of the previous year.
  • Adjusted EPS reached $10.56, up from $2.86 year-over-year.
  • Free cash flow increased to $675 million, compared to $442 million in the prior year.

Headline financials

Total Revenue

$4.49B

Previous: $2.95B+52.0%
EPS (adj)

$10.56

Previous: $2.86+269.2%
TTM Book-to-Bill

1.43

No prior period
Capital Expenditures

$99.4M

Previous: $128M-22.5%
Free Cash Flow

$675M

Previous: $442M+52.9%
Net Income

$939M

Previous: $227M+313.3%
Operating Income

$1.29B

Previous: $336M+284.4%
Gross Profit

$1.9B

Previous: $821M+132.1%
Cash & Equivalents

$1.32B

Previous: $338M+291.3%
Total Assets

$20.1B

Previous: $18B+11.2%
Stock-Based Comp

$26.8M

Previous: $23.5M+14.0%

Revenue & EPS history

LabCorp · Revenue · Quarterly

$4.49B

Q4 2020+52%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

LabCorp · $4.55B total across 2 segments · Q4 2020

  • Diagnostics Laboratories
    $3.15B+79.5%
  • Biopharma Laboratory Services
    $1.4B+16.4%

Forward guidance

Labcorp provided its outlook for 2021, including revenue growth, adjusted EPS, and free cash flow.

Tailwinds

  • Total Labcorp Enterprise revenue is expected to increase by (1.0%) to 4.5%.
  • Base Business revenue is projected to grow between 11.0% and 13.5%.
  • Total Diagnostics revenue is anticipated to increase by (7.5%) to (0.5%).
  • Total Drug Development revenue is forecasted to grow between 8.0% and 10.5%.
  • Free Cash Flow is expected to be in the range of $1.7 billion to $1.9 billion.

Headwinds

  • COVID-19 Testing revenue is expected to decline by (50.0%) to (35.0%).
  • COVID-19 Testing revenue for Total Diagnostics is expected to decline by (50.0%) to (35.0%).
  • Adjusted EPS is projected to be between $19.00 and $23.00.
  • The guidance assumes foreign exchange rates effective as of December 31, 2020.
  • Enterprise level guidance includes the estimated impact from currently anticipated capital allocation, including acquisitions and share repurchases.

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 Q4 2020

Historical avgQ4 2020

-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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