Clinical laboratory company Laboratory Corp. of America Holdings (LH) reported Friday a profit for the second quarter that declined from last year, hurt by higher expenses and restructuring charges. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also raised its earnings forecast for full-year 2014.
"We are pleased with the strong volume growth in the quarter and the sequential stability of revenue per requisition, which has been under pressure due to mix," Chairman and CEO David King said in a statement.
Burlington, North Carolina-based LabCorp reported net earnings of $141.3 million for the second quarter, lower than $151.9 million in the prior-year quarter, while earnings per share grew to $1.64 per share from last year's $1.62 per share, due to lower share count.
Excluding items, adjusted earnings for the quarter was $1.84 per share, compared to $1.80 per share in the year-ago quarter.
On average, 25 analysts polled by Thomson-Reuters expected the company to report earnings of $1.77 for the quarter. Analysts' estimates typically exclude one-time items.
Net sales for the quarter increased 3.3 percent to $1.52 billion from $1.47 billion in the same quarter last year, and topped twenty-three Wall Street analysts' consensus estimate of $1.50 billion.
The company n\attributed the sales growth to test volume, measured by requisitions, and fold-in acquisitions, which was partially offset by mix. Total test volume increased 5.3 percent, while revenue per requisition decreased 2.0 percent, due to test and payer mix.
Looking ahead to fiscal 2014, the company raised its adjusted earnings guidance to a range of $6.50 to $6.75 per share from the prior forecast in the range of $6.40 to $6.70 per share. However, the company continues to project annual sales growth of about 2 percent, implying sales of $5.93 billion, based on 2013 sales of $5.81 billion.
Street is currently looking for full-year 2014 earnings of $6.68 per share on annual revenues growth of 1.8 percent to $5.91 billion.
"We raised our 2014 Adjusted EPS guidance and continue to focus on executing our five-pillar strategy to grow our business and create shareholder value over the long term," King added.
LH closed Thursday's regular trading session at $105.42, down $1.38 on a volume of 1.49 million shares.
For comments and feedback contact: editorial@rttnews.com
Business News