LabCorp Chairman and CEO David King is expecting 2017 to be “another record year” after the global life science giant based in Burlington reported record revenues in 2016 in its latest earnings report.

“We are focused on delivering another record-breaking year in 2017,” King said in a statement early Thursday.

“Our full year outlook anticipates continued strong revenue and EPS growth that will drive substantial free cash flow, which we will deploy toward return of capital to shareholders, strategic acquisitions and debt reduction.”

LabCorp issued the following guidance for the current year:

  • Net revenue growth of 4.5% to 6.5% over 2016 net revenue of $9.44 billion, which includes the negative impact from approximately 60 basis points of foreign currency translation and equates to constant currency revenue growth of 5.1% to 7.1%.
  • Net revenue growth in LabCorp Diagnostics of 4.5% to 6.5% over 2016 net revenue of $6.59 billion, which includes the negative impact from approximately 10 basis points of foreign currency translation and equates to constant currency revenue growth of 4.6% to 6.6%.
  • Net revenue growth in Covance Drug Development of 3.5% to 5.5% over 2016 net revenue of $2.84 billion, which includes the negative impact from approximately 180 basis points of foreign currency translation and equates to constant currency revenue growth of 5.3% to 7.3%. Revenue growth in 2017 is lessened by approximately 100 basis points due to the cancellation of two large clinical studies late in 2016, for which Covance provided central laboratory services.
  • Adjusted EPS of $9.35 to $9.75, an increase of approximately 6% to 10% as compared to $8.83 in 2016.
  • Free cash flow (operating cash flow less capital expenditures) of $925 million to $975 million, an increase of approximately 3% to 9% over the prior year.

LabCorp (NYSE: LH) reported $2.4 billion in revenues for the fourth quarter and $9.4 billion for all 2016, an 11 percent jump year-over-year.

Adjusted earnings for the year rose 12 percent to $8.83 per share.

“We had a strong finish to a record year,” King said of the fourth quarter. “On the strategic front, we continue to establish ourselves as a global life sciences company, deeply integrated in guiding patient care.

“Consistent with our growth strategy, we completed significant transactions involving Sequenom and the Mount Sinai Health System, both of which are market leaders. From a financial perspective, we delivered record revenue, earnings per share and cash flow, while expanding margins in both businesses and returning capital to our shareholders by re-initiating our share repurchase program.”