Latest news with #Schechter
Yahoo
13-05-2025
- Business
- Yahoo
LH Q1 Earnings Call: Labcorp Grows Revenue but Misses Expectations, Raises Adjusted EPS Guidance
Healthcare diagnostics company Labcorp Holdings (NYSE:LH) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 5.3% year on year to $3.35 billion. Its non-GAAP profit of $3.84 per share was 2.8% above analysts' consensus estimates. Is now the time to buy LH? Find out in our full research report (it's free). Revenue: $3.35 billion vs analyst estimates of $3.41 billion (5.3% year-on-year growth, 1.9% miss) Adjusted EPS: $3.84 vs analyst estimates of $3.73 (2.8% beat) Adjusted EBITDA: $560.6 million vs analyst estimates of $577.1 million (16.8% margin, 2.9% miss) Management slightly raised its full-year Adjusted EPS guidance to $16.05 at the midpoint Operating Margin: 9.7%, in line with the same quarter last year Free Cash Flow was -$107.5 million compared to -$163.6 million in the same quarter last year Organic Revenue rose 2.1% year on year, in line with the same quarter last year Market Capitalization: $21 billion Labcorp's first quarter results reflected higher demand in its core diagnostics business, as management pointed to a rebound in test volumes after weather disruptions earlier in the quarter. CEO Adam Schechter cited ongoing growth in the company's managed care contracts and successful integration of recent acquisitions as factors supporting revenue. Schechter also highlighted the launch of new tests in oncology, women's health, autoimmune disease, and neurology as helping Labcorp capture more patient volume in high-growth therapeutic areas. Looking ahead, Labcorp slightly raised its full-year adjusted EPS guidance, with management confident in margin expansion through cost savings and operational efficiencies. Julia Wang, CFO, explained that guidance now factors in potential tariff impacts and ongoing regulatory uncertainty, but benefits from the company's expense control initiatives and supply chain flexibility. Schechter emphasized the company's ability to offset rising personnel costs and external headwinds, stating, 'We think we'll be able to offset the impacts from tariffs.' Labcorp's management focused on business execution, segment momentum, and adapting to a changing regulatory and macroeconomic environment. Diagnostics volume recovery: The diagnostics segment benefitted from a rebound in test volumes after weather-related softness early in the quarter, with organic growth improving when adjusted for these headwinds. Integration of Invitae acquisition: Management reported Invitae is on track to deliver over 10% revenue growth and become slightly accretive to earnings for the full year. The integration is progressing better than anticipated, and the acquisition is seen as a key contributor to growth in high-potential areas such as oncology and women's health. New test launches and innovation: Labcorp introduced several new tests, including a liquid biopsy for personalized cancer treatment and a blood-based biomarker for Alzheimer's disease. These offerings are expected to help Labcorp expand in faster-growing therapeutic segments. Operational efficiency initiatives: The company continues to drive savings through its LaunchPad program and the rollout of digital tools, such as eClaim Assist for billing and a diagnostics assistant for providers, aimed at improving both margins and customer experience. Tariff and regulatory planning: Management discussed contingency planning for various tariff and regulatory scenarios, emphasizing that supply chain flexibility and long-term contracts with U.S. suppliers help minimize risks. The company's guidance range incorporates what it views as the most likely macroeconomic and policy scenarios. Labcorp's outlook for the remainder of the year emphasizes margin improvement, continued acquisition integration, and resilience to external pressures, with a focus on high-growth testing categories. Continued product and test expansion: Management expects new test launches, especially in oncology and neurology, to drive above-market growth. The focus is on expanding test menus that meet unmet clinical needs and attract new customer segments. Cost management and operational leverage: The LaunchPad cost savings program and adoption of digital workflow tools are anticipated to offset inflationary pressures, including rising personnel costs and potential tariff impacts. Regulatory and payer landscape: Ongoing monitoring of U.S. policy changes such as PAMA (Protecting Access to Medicare Act) and new tariffs remains a risk, but management believes that diversified payer contracts and contingency planning will support stable performance. Michael Cherny (Leerink Partners): Asked about volatility in biopharma laboratory services and the impact of regulatory changes. Management said the guidance range reflects possible study delays but has not seen significant disruptions so far. Ann Hynes (Mizuho): Inquired about the degree to which tariffs are now incorporated into guidance. CEO Adam Schechter explained that most supply contracts are U.S.-based and multi-year, so tariff exposure is limited and manageable. Erin Wright (Morgan Stanley): Sought clarity on the split between organic and acquisition-driven growth in diagnostics, as well as the impact of weather. CFO Julia Wang clarified that, adjusted for weather, organic growth was consistent with historical trends. Lisa Gill (JP Morgan): Asked about the regulatory outlook for animal testing in early development. Schechter estimated this is 10–15% of the biopharma segment's revenue and does not expect a major impact this year. Jack Meehan (Nephron Research): Pressed for details on Invitae's trajectory toward accretion. Management reported integration is proceeding well, with cost savings expected to make Invitae slightly accretive to earnings by year-end. In the coming quarters, the StockStory team will be watching (1) progress in integrating acquisitions such as Invitae and the resulting impact on margins, (2) the launch and adoption of new high-growth diagnostic tests—particularly in oncology and neurology, and (3) management's ability to offset inflationary and tariff headwinds through operational efficiency programs. The evolution of the regulatory landscape and updates on Labcorp's business development pipeline will also be important signposts for tracking the company's execution. Labcorp currently trades at a forward P/E ratio of 15.2×. Should you double down or take your chips? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
03-04-2025
- Politics
- Yahoo
For Skokie Trustee, Robinson, Schechter, Slovin, Levy win in unofficial returns
A historic election in Skokie on April 1 resulted in voters selecting both reform-minded and more traditional candidates for the Village Board. It was the first election to implement a new governmental structure, calling for one Village Board trustee to be elected from each of four geographic districts and two trustees to be elected at-large by the entire village, that Skoieans had approved in 2022. Keith Robinson, an incumbent, and Gail Schechter, a reform activist, declared victory in the April 1 election race for the two at-large trustee seats. In the district races, unofficial Cook County Clerk election results show newcomer Kimani Levy appeared to have won the trustee seat in District 1, the northwest quadrant of Skokie, and incumbent Alison Pure Slovin appeared to have been elected in District 2, the northeast quadrant. In District 3, the southeast quadrant, Lissa Levy ran unopposed and is expected to become the trustee. The District 4 race for the southeast quadrant trustee has two candidates separated by only a few votes, and is still to be determined. Robinson, an incumbent who was on the Skokie Caucus Party ticket in 2021 and the Skokie Forward Slate in 2025, said, 'I'm thankful for the trustees who have served and kind of led the way for me, but also the ones that I've served with… In any leadership position that I've had, I've always learned things can be more efficient and effective. And I've also learned what not to do, or what to be cautious of.' Schechter, an affordable housing advocate and vocal critic of the Skokie Caucus party, said Tuesday's election results show that 'people in the village of Skokie elected people who have skills, who have expertise, who know how to get things done.' In 2022, Schechter and others who were part of the Skokie Alliance for Electoral Reform gathered thousands of signatures to get reform referendums onto the November 2022 ballot. Voters approved all three of those referendums, which included creating geographic districts in Skokie to ensure representation from various geographic parts of the village, creating nonpartisan elections and staggering elections so that some officials are elected every two years and others are elected two years after that, and so on. Previously, the entire Board ran every four years. The district trustees and at-large trustees have the same authority and responsibilities. The district trustees ran for two-year terms, and elections will again be held for those seats in 2027.
Chicago Tribune
03-04-2025
- Politics
- Chicago Tribune
For Skokie Trustee, Robinson, Schechter, Slovin, Levy win in unofficial returns
A historic election in Skokie on April 1 resulted in voters selecting both reform-minded and more traditional candidates for the Village Board. It was the first election to implement a new governmental structure, calling for one Village Board trustee to be elected from each of four geographic districts and two trustees to be elected at-large by the entire village, that Skoieans had approved in 2022. Keith Robinson, an incumbent, and Gail Schechter, a reform activist, declared victory in the April 1 election race for the two at-large trustee seats. In the district races, unofficial Cook County Clerk election results show newcomer Kimani Levy appeared to have won the trustee seat in District 1, the northwest quadrant of Skokie, and incumbent Alison Pure Slovin appeared to have been elected in District 2, the northeast quadrant. In District 3, the southeast quadrant, Lissa Levy ran unopposed and is expected to become the trustee. The District 4 race for the southeast quadrant trustee has two candidates separated by only a few votes, and is still to be determined. Robinson, an incumbent who was on the Skokie Caucus Party ticket in 2021 and the Skokie Forward Slate in 2025, said, 'I'm thankful for the trustees who have served and kind of led the way for me, but also the ones that I've served with… In any leadership position that I've had, I've always learned things can be more efficient and effective. And I've also learned what not to do, or what to be cautious of.' Schechter, an affordable housing advocate and vocal critic of the Skokie Caucus party, said Tuesday's election results show that 'people in the village of Skokie elected people who have skills, who have expertise, who know how to get things done.' In 2022, Schechter and others who were part of the Skokie Alliance for Electoral Reform gathered thousands of signatures to get reform referendums onto the November 2022 ballot. Voters approved all three of those referendums, which included creating geographic districts in Skokie to ensure representation from various geographic parts of the village, creating nonpartisan elections and staggering elections so that some officials are elected every two years and others are elected two years after that, and so on. Previously, the entire Board ran every four years. The district trustees and at-large trustees have the same authority and responsibilities.
