Laboratory Corp Q1 Profit Tops Estimates

reported better-than-expected earnings for the first quarter. The Burlington, North Carolina-based company reported quarterly earnings of $700,000, or $0.01 per share, compared to $113.1 million, or $1.31 per share, in the year-ago period. Excluding items, the company's earnings rose to $1.73 per share from $1.51 per share. Its net revenue climbed 23.9 percent to $1.77 billion. However, analysts were expecting earnings of $1.63 per share on revenue of $1.79 billion. Pro forma net revenue for LabCorp Diagnostics segment climbed 4.9 percent to $1.48 billion in the latest quarter, while Covance Drug Development pro forma net revenue slipped 1.9 percent to $624.6 million. Operating income slipped to $130.2 million for the quarter, down from $203.3 million in the year-ago quarter. At the end of the quarter, LabCorp had $446.4 million in cash balance and $6.9 billion in total debt. The average estimate among 13 Estimize users was for earnings of $1.66 per share and revenue of $1.78 billion. "We had a very strong quarter highlighted by closing the acquisition of Covance, and generating solid organic revenue growth and operating leverage," said David P. King, Chairman and Chief Executive Officer. "As the world's leading healthcare diagnostics company, we are uniquely positioned to drive long-term profitable growth through our powerful combination of world-class diagnostics, drug development expertise, and knowledge services." For the full year, LabCorp projects earnings of $7.55 to $7.90 per share, versus analysts' estimates of $7.60 per share. LabCorp shares rose 0.44 percent to close at $126.93 on Friday.