Laboratory Corp Revenue and Profit Rise
28 July 2016 - 12:00AM
Dow Jones News
Medical-testing company Laboratory Corp. of America Holdings
said it posted revenue and profit growth in its latest quarter as
acquisitions continue to bolster results.
LabCorp also said Wednesday that it was buying prenatal testing
company Sequenom Inc. for about $2.40 a share, in a deal worth
about $302 million. Shares of Sequenom rose to $2.39 in premarket
trading, up from a closing price of 85 cents Tuesday.
The diagnostic company raised the lower ends of both its revenue
and profit guidance for the year. It now expects annual revenue
growth of 9.5% to 10.5%, compared with 8.5% to 10.5% previously. It
raised the low end of its earnings-per-share guidance by five
cents, now expecting adjusted earnings per share of between $8.60
and $8.95.
The Burlington, N.C.-based company has benefited from a string
of acquisitions, including its roughly $6 billion tie-up last year
with Covance, a provider of outsourced research-and-development
services. During the most recent quarter, Covance brought in $722.4
million in revenue, up 12.2% from the year prior. Revenue in its
diagnostics segment unit grew 5.4% to $1.66 billion.
LabCorp said organic revenue rose 6.4% during the period due to
increases in price, mix and tuck-in acquisitions.
For the quarter, LabCorp earned $198.2 million, up from $169.8
million in the year-ago quarter. On a per-share basis, earnings
grew to $1.91 from $1.66 amid a higher share count. Excluding
special items, adjusted earnings per share were $2.31.
Revenue increased 7.4% to $2.38 billion.
Analysts had projected $2.30 in per-share earnings on $2.33
billion in revenue, according to Thomson Reuters.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
July 27, 2016 09:45 ET (13:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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