Latest news with #LabcorpHoldings
Yahoo
27-07-2025
- Business
- Yahoo
Labcorp Holdings Second Quarter 2025 Earnings: Revenues Beat Expectations, EPS Lags
Labcorp Holdings (NYSE:LH) Second Quarter 2025 Results Key Financial Results Revenue: US$3.53b (up 9.5% from 2Q 2024). Net income: US$237.9m (up 16% from 2Q 2024). Profit margin: 6.7% (up from 6.4% in 2Q 2024). The increase in margin was driven by higher revenue. EPS: US$2.85 (up from US$2.44 in 2Q 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Labcorp Holdings Revenues Beat Expectations, EPS Falls Short Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates by 12%. Looking ahead, revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Healthcare industry in the US. Performance of the American Healthcare industry. The company's shares are up 8.7% from a week ago. Risk Analysis You should learn about the 2 warning signs we've spotted with Labcorp Holdings. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
24-07-2025
- Business
- Yahoo
Labcorp (LH) Shares Skyrocket, What You Need To Know
What Happened? Shares of healthcare diagnostics company Labcorp Holdings (NYSE:LH) jumped 6.8% in the afternoon session after the company reported second-quarter earnings that beat analyst expectations and raised its full-year financial outlook. The laboratory network operator posted an adjusted EPS of $4.35, which surpassed consensus estimates. Revenue for the quarter increased 9.5% year-over-year to $3.53 billion, driven by growth in both its Diagnostics and Biopharma segments. In a significant show of confidence, Labcorp boosted its full-year 2025 guidance, projecting adjusted earnings per share between $16.05 and $16.50 and revenue growth between 7.5% and 8.6%. The company also noted that it had repurchased $200 million of its common stock during the quarter, further underscoring the strength of its financial position and business performance. Is now the time to buy Labcorp? Access our full analysis report here, it's free. What Is The Market Telling Us Labcorp's shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. Labcorp is up 17.9% since the beginning of the year, and at $268.93 per share, has set a new 52-week high. Investors who bought $1,000 worth of Labcorp's shares 5 years ago would now be looking at an investment worth $1,353. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Yahoo
24-07-2025
- Business
- Yahoo
Labcorp (NYSE:LH) Posts Better-Than-Expected Sales In Q2
Healthcare diagnostics company Labcorp Holdings (NYSE:LH) announced better-than-expected revenue in Q2 CY2025, with sales up 9.5% year on year to $3.53 billion. Its non-GAAP profit of $4.35 per share was 4.5% above analysts' consensus estimates. Is now the time to buy Labcorp? Find out in our full research report. Labcorp (LH) Q2 CY2025 Highlights: Revenue: $3.53 billion vs analyst estimates of $3.49 billion (9.5% year-on-year growth, 1% beat) Adjusted EPS: $4.35 vs analyst estimates of $4.16 (4.5% beat) Adjusted EBITDA: $598.9 million vs analyst estimates of $611 million (17% margin, 2% miss) Management raised its full-year Adjusted EPS guidance to $16.28 at the midpoint, a 1.4% increase Operating Margin: 11.2%, up from 9.2% in the same quarter last year Free Cash Flow Margin: 15.4%, up from 13.4% in the same quarter last year Organic Revenue rose 5.4% year on year (3.8% in the same quarter last year) Market Capitalization: $20.97 billion "Labcorp had a very strong second quarter, delivering double-digit topline growth, while expanding margins across both segments," said Adam Schechter, chairman and CEO of Labcorp. Company Overview With over 600 million tests performed annually and involvement in 90% of FDA-approved drugs in 2023, Labcorp (NYSE:LH) provides laboratory testing services and drug development solutions to doctors, hospitals, pharmaceutical companies, and patients worldwide. Revenue Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, Labcorp's 3.3% annualized revenue growth over the last five years was tepid. This was below our standard for the healthcare sector and is a poor baseline for our analysis. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Labcorp's annualized revenue growth of 6.6% over the last two years is above its five-year trend, but we were still disappointed by the results. Labcorp also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Labcorp's organic revenue averaged 3.5% year-on-year growth. Because this number is lower than its normal revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results. This quarter, Labcorp reported year-on-year revenue growth of 9.5%, and its $3.53 billion of revenue exceeded Wall Street's estimates by 1%. Looking ahead, sell-side analysts expect revenue to grow 5.7% over the next 12 months, similar to its two-year rate. This projection is above average for the sector and indicates its newer products and services will help sustain its recent top-line performance. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Labcorp has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 14.1%, higher than the broader healthcare sector. Analyzing the trend in its profitability, Labcorp's operating margin decreased by 16.2 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, Labcorp generated an operating margin profit margin of 11.2%, up 2 percentage points year on year. This increase was a welcome development and shows it was more efficient. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Labcorp's EPS grew at a solid 7.2% compounded annual growth rate over the last five years, higher than its 3.3% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't improve. We can take a deeper look into Labcorp's earnings quality to better understand the drivers of its performance. A five-year view shows that Labcorp has repurchased its stock, shrinking its share count by 14.1%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. In Q2, Labcorp reported EPS at $4.35, up from $3.94 in the same quarter last year. This print beat analysts' estimates by 4.5%. Over the next 12 months, Wall Street expects Labcorp's full-year EPS of $15.14 to grow 10.9%. Key Takeaways from Labcorp's Q2 Results It was good to see Labcorp narrowly top analysts' full-year EPS guidance expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street's estimates. On the other hand, its organic revenue slightly missed. Overall, this print had some key positives. The stock traded up 2.6% to $257.09 immediately following the results. Is Labcorp an attractive investment opportunity right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. 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Yahoo
18-07-2025
- Business
- Yahoo
Will Labcorp (LH) Beat Estimates Again in Its Next Earnings Report?
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Labcorp Holdings (LH), which belongs to the Zacks Medical Services industry, could be a great candidate to consider. This medical laboratory operator has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 2.21%. For the last reported quarter, Labcorp came out with earnings of $3.84 per share versus the Zacks Consensus Estimate of $3.73 per share, representing a surprise of 2.95%. For the previous quarter, the company was expected to post earnings of $3.4 per share and it actually produced earnings of $3.45 per share, delivering a surprise of 1.47%. Price and EPS Surprise Thanks in part to this history, there has been a favorable change in earnings estimates for Labcorp lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Labcorp currently has an Earnings ESP of +0.51%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 24, 2025. With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss. Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Labcorp Holdings Inc. (LH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
25-05-2025
- Business
- Yahoo
Should You Buy Labcorp Holdings Inc. (NYSE:LH) For Its Upcoming Dividend?
Labcorp Holdings Inc. (NYSE:LH) stock is about to trade ex-dividend in 3 days. The ex-dividend date occurs one day before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Therefore, if you purchase Labcorp Holdings' shares on or after the 29th of May, you won't be eligible to receive the dividend, when it is paid on the 11th of June. The company's next dividend payment will be US$0.72 per share, and in the last 12 months, the company paid a total of US$2.88 per share. Looking at the last 12 months of distributions, Labcorp Holdings has a trailing yield of approximately 1.2% on its current stock price of US$242.53. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. Our free stock report includes 1 warning sign investors should be aware of before investing in Labcorp Holdings. Read for free now. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Fortunately Labcorp Holdings's payout ratio is modest, at just 33% of profit. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. The good news is it paid out just 21% of its free cash flow in the last year. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. See our latest analysis for Labcorp Holdings Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. If earnings fall far enough, the company could be forced to cut its dividend. It's not encouraging to see that Labcorp Holdings's earnings are effectively flat over the past five years. It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share. Recent growth has not been impressive. However, companies that see their growth slow can often choose to pay out a greater percentage of earnings to shareholders, which could see the dividend continue to rise. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Labcorp Holdings's dividend payments are broadly unchanged compared to where they were three years ago. Is Labcorp Holdings an attractive dividend stock, or better left on the shelf? Earnings per share have been flat over this time, but we're intrigued to see that Labcorp Holdings is paying out less than half its earnings and cash flow as dividends. This is interesting for a few reasons, as it suggests management may be reinvesting heavily in the business, but it also provides room to increase the dividend in time. We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine strong earnings per share growth with a low payout ratio, and Labcorp Holdings is halfway there. There's a lot to like about Labcorp Holdings, and we would prioritise taking a closer look at it. In light of that, while Labcorp Holdings has an appealing dividend, it's worth knowing the risks involved with this stock. Our analysis shows 1 warning sign for Labcorp Holdings and you should be aware of it before buying any shares. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
