NEW YORK – Labcorp (NYSE:LH) reported a notable beat in its first quarter earnings, but shares fell 3.3% in response to the financial update.
The company reported adjusted earnings per share (EPS) of $3.68, surpassing analyst expectations of $3.49. Revenue also exceeded forecasts, coming in at $3.18 billion against a consensus estimate of $3.12 billion, marking a 4.6% increase from the $3.04 billion reported in the same period last year.
The diagnostics company also raised its full-year 2024 adjusted EPS guidance to a range of $14.45 to $15.35, with the midpoint slightly above the analyst consensus of $14.82. Despite this, investor sentiment appeared cautious, as reflected in the stock's decline following the announcement.
Labcorp's chairman and CEO, Adam Schechter, highlighted the company's robust start to the year, emphasizing strategic acquisitions and the expansion of their test menu in key therapeutic areas.
"Labcorp's first quarter performance sets a strong foundation for the year ahead," Schechter stated. He underscored the company's status as a preferred partner for health systems and laboratories and its commitment to leveraging science and technology to meet patient needs.
The company's base business grew by 6.7%, and they have announced or completed five acquisitions to date, which align with their strategic goals. Labcorp's focus on innovation and expansion in testing capabilities is part of its broader mission to improve health and lives.
While the first quarter results and raised guidance suggest a positive outlook for Labcorp, the market's reaction indicates that investors may have had higher expectations or concerns not directly addressed by the financial figures.
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