Labcorp Holdings Set to Report Q1 Earnings Amid Growth Projections

Labcorp Holdings Inc. (LH), headquartered in Burlington, North Carolina, is a prominent provider of laboratory services. With a market capitalization of $19.3 billion, the company specializes in clinical lab tests for a variety of health conditions, including allergies, genetics, colorectal cancer, diabetes, chronic kidney disease, and pregnancy. Additionally, it conducts clinical trials for oncology and COVID-19. Investors are anticipating the announcement of the company’s fiscal first-quarter earnings for 2025, scheduled for Tuesday, Apr. 29, before the market opens.

Analyst Expectations for Q1 Performance

Prior to the earnings announcement, analysts predict LH will report a profit of $3.75 per share on a diluted basis. This marks an increase of 1.9% compared to $3.68 per share in the same quarter last year. Notably, the company has consistently exceeded Wall Street’s EPS estimates in its last four quarterly reports.

Full-Year Projections and Future Growth

Looking at the full year, analysts anticipate LH will report earnings per share (EPS) of $16.01, which represents a 9.9% increase from $14.57 in fiscal 2024. Furthermore, LH’s EPS is projected to grow by 9.6% year over year, reaching $17.54 in fiscal 2026.

Stock Performance Overview

LH Stock has demonstrated strong performance, surpassing the S&P 500’s ($SPX) 2.1% gains over the past year, with shares appreciating 5.5% during this period. In contrast, the Health Care Select Sector SPDR Fund’s (XLV) saw a decline of 4.7% in the same timeframe.

Strategic Enhancements and Future Directions

Labcorp is making strides in its testing capabilities, particularly in neurodegenerative diseases and oncology. The introduction of new blood-based biomarkers and diagnostic assays complements its recent acquisitions, including select assets from Invitae, which enhance its specialty testing portfolio. The expansion of the Labcorp OnDemand platform and the acquisition of additional laboratory services are also part of its strategy to broaden its industry impact, which is expected to foster significant growth as the company moves into 2025.

Recent Financial Results and Analyst Consensus

On Feb. 6, LH shares experienced a slight decline following the release of its Q4 results. Its adjusted EPS of $3.45 surpassed Wall Street expectations of $3.40. The company’s reported revenue stood at $3.33 billion, exceeding forecasts of $3.31 billion. Looking ahead, LH projects full-year adjusted EPS to be in the range of $15.60 to $16.40, with expected revenue between $13.9 billion and $14.1 billion.

According to analysts, the consensus opinion on LH Stock remains positive, with a “Strong Buy” rating overall. Out of 17 analysts tracking the stock, 14 suggest a “Strong Buy,” while three recommend a “Hold.” The average price target for LH is set at $277.88, indicating a potential upside of 27.1% from current levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.