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 saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on November 19, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 50 instances where the indicator turned negative. In of the 50 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The 10-day RSI Indicator for LH moved out of overbought territory on November 14, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator moved out of overbought territory. In of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on December 05, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on LH as a result. In of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 .
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LH advanced for three days, in of 342 cases, the price rose further within the following month. The odds of a continued upward trend are .
LH may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 261 cases where LH Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly 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 (2.311) is normal, around the industry mean (23.246). P/E Ratio (49.965) is within average values for comparable stocks, (83.568). Projected Growth (PEG Ratio) (0.508) is also within normal values, averaging (5.667). Dividend Yield (0.013) settles around the average of (0.018) among similar stocks. P/S Ratio (1.558) is also within normal values, averaging (43.227).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued 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.
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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of medical testing services
Industry MedicalSpecialties