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 +1.41% Uptrend, advancing for three consecutive days on July 01, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where LH advanced for three days, in of 343 cases, the price rose further within 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 30, 2025. You may want to consider a long position or call options on LH as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 241 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 10-day RSI Indicator for LH moved out of overbought territory on June 17, 2025. 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 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Moving Average Convergence Divergence Histogram (MACD) for LH turned negative on June 25, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 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 (24.307). P/E Ratio (49.965) is within average values for comparable stocks, (77.706). 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 (42.612).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
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 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.
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General Information
a provider of medical testing services
Industry MedicalSpecialties
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