LabCorp’s shares are up 22 percent already this year – and they could be moving higher.
LabCorp beat the Street in revenue and earnings in its latest financial report disclosed early Wednesday before the markets opened. And its top executive sees more growth ahead for the Burlington-based life science services giant.
“We made great progress on our strategic initiatives with use of our combined data, health system partnerships and expansion into the consumer channel, and we are well positioned for growth in the balance of 2017 and in the years ahead,” said Chairman and CEO David King in a statement.
LabCorp (NYSE: LH) reported adjusted earnings of $2.47 a share, topping expectations of analysts polled by Zacks Investment Research who estimated $2.38 per share.
Revenue came in at $2.54 billion, exceeding expectations of $2.47 billion.
LabCorp shares closed Tuesday at $156.93.
Earlier this year, King forecast good news.
“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,” he said in February.
King cited several reasons for LabCorp’s growing revenues, which he said set a “record” for the most recent quarter.
He pointed out “outstanding growth in the Diagnostics business through a combination of excellent organic growth and strategic acquisitions” and explained that “The Drug Development business performed as we expected, highlighted by our third consecutive quarter of robust net orders and improving book-to-bill.”
LabCorp has made a host of acquisitions over the past three years, including a $6 billion deal for Covance.
The company also continues to expand its arrays of tests and recently announced a partnership with Walgreens to off in-store lab services.