BURLINGTON – Life science giant LabCorp’s stock may face some turbulence today after its latest quarterly financial report.
Revenue came in slightly under estimates from analysts data reported by Zacks. But adjusted earnings came in slightly higher.
Early Thursday, the Burlington-based firm reported revenues of $2.87 billion, which missed the $2.9 billion projection from Zacks.
Adjusted earnings were $2.93 per share. Zacks had projected $2.90.
Revenues grew half a percent year-over year and adjusted earnings fell 2 percent from the same quarter a year ago.
However, LabCorp did say earnings guidance remained positive, projecting a 1 to 3 percent increase over 2018 in a range from $11.10 to $11.40.
LabCorp CEO David King is retiring, to take executive chairman role
LabCorp Chair CEO David King, who recently disclosed plans to retire, cited several reasons for a lack of stronger growth but also said the company’s future is positive.
“This quarter again highlighted the strength and balance of our businesses,” King said in a statement. “Revenue grew 4.1% excluding non-operational headwinds from PAMA [Protecting Access to Medicare Act], disposition of businesses, and currency translation.
“Diagnostics performed well during the quarter, with the LaunchPad business transformation initiative largely offsetting known headwinds, while Drug Development continued to deliver strong top-line growth and margin expansion.
“We deployed capital to share repurchase and acquisitions, returning capital to shareholders and adding to our repertoire of innovative customer solutions that deliver value our customers want. We remain well-positioned to drive growth in 2019 and the years to come.”
So what’s next at LabCorp as David King retires from CEO job? Here’s a Q&A
