Labcorp (LH, $256.21) beats Q4 earnings estimates; top-line decreases on COVID-19 testing revenue dip
Laboratory Corporation of America Holdings posted fourth-quarter 2022 adjusted earnings per share of $4.14, topping analysts' estimates of $4.10. The figure was also down -38.8% from the year-ago quarter’s figure.
Revenues were down -9.4% year-over-year to $3.67 billion, missing the Street estimates of $3.74 billion (according to Refinitiv data).
Organic revenues fell -9.4%, amid a -13.4% decrease in COVID-19 PCR and antibody testing (COVID-19 testing), partially offset by a +3.9% rise in organic Base Business. Foreign currency impact had a -1.3% adverse impact. However, there was a +1.3% growth from acquisitions net of divestitures.
Gross margin contracted -750 basis points to 26.4% in the fourth quarter. Adjusted operating margin narrowed by -870 bps from the year-ago quarter to 11.8%.
Laboratory Corporation expects full-year adjusted earnings per share in the range of $16 to $18 per share, while the Street forecast is $17.65. The company projects 2023 free cash flow figure in the range of $1-$1.2 billion.
Total LabCorp Enterprise revenues (net of intersegment transaction eliminations, including Drug Development COVID-19 testing revenues) are expected to have growth in the range of 1-4%. Base Business growth is predicted to be 8.5-10.5%. The company anticipates COVID-19 testing revenues to decrease by -75% to -90%. Total Diagnostics revenues are projected to be down -2% to up +1.5%. Total Drug Development revenues are expected to grow 5-7%.
LH in upward trend: 10-day moving average broke above 50-day moving average on June 10, 2026
The 10-day moving average for LH crossed bullishly above the 50-day moving average on June 10, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 26, 2026. You may want to consider a long position or call options on LH as a result. In of 103 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for LH just turned positive on June 25, 2026. Looking at past instances where LH's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
LH moved above its 50-day moving average on June 24, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LH advanced for three days, in of 328 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 193 cases where LH Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LH declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
LH broke above its upper Bollinger Band on June 29, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.390) is normal, around the industry mean (12.434). P/E Ratio (22.536) is within average values for comparable stocks, (145.945). Projected Growth (PEG Ratio) (1.076) is also within normal values, averaging (1.488). Dividend Yield (0.011) settles around the average of (0.008) among similar stocks. P/S Ratio (1.501) is also within normal values, averaging (7.258).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. LH’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a provider of medical testing services
Industry MedicalSpecialties
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