BURLINGTON—LabCorp said it delivered record results highlighted by outstanding growth in the third quarter, as revenue increased by 10 percent, adjusted EPS increased by 9 percent, and strong cash flow resulted in an increase of our full year free cash flow guidance to roughly $1 billion.
Revenue from its diagnostic services, its major business, rose 10 percent to $1.84 billion. It posted diluted earnings per share of $1.74 for the quarter, up two percent and adjusted EPS of $2.46, up nine percent from last year.
Analysts from Thomson Reuters had predicted an EPS of $2.40.
David P. King, chairman and CEO said in a statement that “The Diagnostics business had strong organic and total volume growth despite the adverse impact from multiple hurricanes, and the drug development business turned in a solid performance, highlighted by improved margins, robust net orders, increased book-to-bill, and the closing of the $1.2 billion Chiltern acquisition.”
Net revenue for the quarter was $2.6 billion, an increase of 9.5 percent compared to $2.37 billion in the third quarter of 2016.
The increase in net revenue was due to growth from acquisitions of 6.9 percent, organic growth (net revenue growth less revenue from acquisitions for the first twelve months after the close of each acquisition) of 2.3percent, and the benefit from foreign currency translation of approximately 30 basis points.
The company’s Covance unit, which conducts clinical trials, nabbed $761.1 million in revenue, up 8.6 percent from the previous year.
The company said revenue growth was negatively impacted by approximately 0.7% due to multiple hurricanes during the quarter.
The company boosted the low end of its adjusted earnings forecast by a dime, from $9.30 to $9.40, but lowered the top to $9.60 from$9.65.
