By Puyaan Singh
(Reuters) - Labcorp beat Wall Street expectations for first-quarter profit on Thursday, as growing demand for specialty tests boosted sales at its diagnostics business. Specialty testing, which includes cancer and prenatal tests, have been growing at an accelerated pace, along with a steady demand for routine tests, CEO Adam Schechter told Reuters.
More people in the United States, where Labcorp has more than 2000 patient service centers, are catching up on medical procedures and routine check-ups that were deferred due to pandemic-driven restrictions.
The increased uptake of medical procedures has benefited U.S.-based lab testing companies, including Labcorp's rival Quest Diagnostics (NYSE:DGX), which raised its 2024 revenue and profit forecast earlier this week betting on strong demand for diagnostic tests.
Sales from the diagnostics unit - its biggest segment by revenue - were $2.48 billion in the quarter ended March 31, up 4.2% from a year earlier.
The life sciences company narrowed its 2024 adjusted profit forecast to between $14.45 and $15.35 per share from $14.30-$15.40 per share.
At midpoint, the forecast is ahead of analysts profit expectations of $14.82 per share, according to LSEG data.
On Wednesday, the company said it will acquire bankrupt genetic test maker Invitae (OTC:NVTAQ) for $239 million.
The Burlington (NYSE:BURL), North Carolina-based company reported total revenue of $3.18 billion, topping estimates of $3.12 billion.
On an adjusted basis, Labcorp reported first-quarter profit of $3.68 per share, beating expectations of $3.48 per share.
The company is officially changing its name to Labcorp from Laboratory Corporation of America (NYSE:LH) from May 17.