Healthcare diagnostics company Labcorp Holdings (NYSE:LH) will be reporting earnings tomorrow before the bell. Here’s what to look for.
Labcorp met analysts’ revenue expectations last quarter, reporting revenues of $3.28 billion, up 7.4% year on year. It was a slower quarter for the company, with EPS in line with analysts’ estimates.
Is Labcorp a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Labcorp’s revenue to grow 9.2% year on year to $3.31 billion, improving from the 3.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.39 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Labcorp has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Labcorp’s peers in the healthcare providers & services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Quest delivered year-on-year revenue growth of 14.6%, beating analysts’ expectations by 1.8%, and Centene reported revenues up 3.4%, topping estimates by 4.4%. Quest traded up 5% following the results.
Read our full analysis of Quest’s results here and Centene’s results here.
There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 2.7% on average over the last month. Labcorp is up 4.9% during the same time and is heading into earnings with an average analyst price target of $262.24 (compared to the current share price of $246.67).
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