LabCorp. of America Earnings: Another Quarter of Rising Profit
S&P 500 (NYSE:SPY) component Laboratory Corporation of America Holdings (NYSE:LH) reported its results for the third quarter. Laboratory Corporation of America provides testing services used by the medical profession in patient diagnosis and in the monitoring and treatment of disease.
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Laboratory Corporation of America Holdings Earnings Cheat Sheet
Results: Net income for Laboratory Corporation of America Holdings rose to $148 million ($1.53 per share) vs. $134.3 million ($1.31 per share) in the same quarter a year earlier. This marks a rise of 10.2% from the year-earlier quarter.
Revenue: Rose 1.1% to $1.42 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Laboratory Corporation of America Holdings fell short of the mean analyst estimate of $1.78 per share. Analysts were expecting revenue of $1.44 billion.
Quoting Management: “We are pleased with our third quarter and year-to-date results,” said David P. King, Chairman and Chief Executive Officer. “We delivered approximately ten percent earnings growth for the quarter and year to date, and we saw improving volume trends in the quarter, despite the challenging economic environment.”
The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 24.7% and in the first quarter, the figure rose 27.1%.
Revenue has risen for the last four quarters. Revenue increased 1.4% to $1.42 billion in the second quarter. The figure rose 4% in the first quarter from the year earlier and climbed 5.5% in the fourth quarter of the last fiscal year from the year-ago quarter.
After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the second quarter, it topped the mark by 6 cents, and in the first quarter, it was ahead by 4 cents.
Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from $1.79 per share to $1.78. For the fiscal year, the average estimate has moved down from $7.04 a share to $7 over the last thirty days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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