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LH NYSE· Laboratory Corporation of America Holdings
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LH NYSE· Laboratory Corporation of America Holdings
Earnings report Q4 2023

Laboratory Corporation of America Holdings Reports Modest Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, Laboratory Corporation of America Holdings (LH) reported revenues of $12.2 billion, representing a 2.5% increase compared to the same period last year. This growth was driven by a combination of factors, including acquisitions (net of divestitures) contributing 1.7%, organic revenue growth of 0.6%, and favorable foreign currency translation of 0.2%.

Strengths

The company's organic revenue growth of 0.6% was primarily attributed to an 8.7% increase in LH's organic Base Business. This positive performance in the Base Business segment helped offset an 8.1% decrease in COVID-19 Testing revenue. The company's management highlighted the resilience and strength of their core operations, which contributed to the overall revenue growth.

Challenges

Despite the overall revenue growth, LH faced challenges in its COVID-19 Testing segment, which experienced an 8.1% decline. This decrease can be attributed to various factors, including changing testing demands and the ongoing impact of the pandemic. The company's management acknowledged the need to adapt to these challenges and continue monitoring the evolving testing landscape.

Noteworthy

It is worth noting that LH's total volume, measured by requisitions, increased by 0.6% in the latest quarter. This growth was driven by a 2.5% contribution from acquisitions and a 4.8% increase in Base Business volume. However, organic volume decreased by 1.9%, primarily due to a 6.6% decline in COVID-19 Testing volume. The company's price/mix also increased by 1.7%, mainly driven by higher Base Business volume.

Summary

Laboratory Corporation of America Holdings reported modest revenue growth of 2.5% in the latest quarter. This growth was driven by a combination of acquisitions, organic revenue growth, and favorable foreign currency translation. The company's organic Base Business performed well, offsetting the decline in COVID-19 Testing revenue. However, LH faced challenges in its COVID-19 Testing segment, which experienced an 8.1% decrease. Overall, LH demonstrated resilience in its core operations and remains focused on adapting to the changing testing landscape.

Source documents

Form 10-K  filed on Feb 26, 2024
122 pages scanned

Reference data

Company financials Q4 revenue 3.03B
Analyst estimates Q4 EPS missed by -0.87%
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