Laboratory Corporation of America Holdings


SKU: LH-1 Category:


Laboratory Corporation of America delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as the earnings expectations of Wall Street. The drug development was impacted by NHP shortages, lower COVID-related work, and the previous loss of an FSP contract. Base business revenue and base business revenue of Diagnostic Laboratories grew driven by strong base business volume and Ascension. This quarter revenue grew for Biopharma Laboratory Services, driven by the Central Laboratories business. Labcorp, a segment of the company’s laboratory services business, delivered exceptional growth in its Diagnostic Laboratories and generated strong progress in Central Laboratories. The early development research laboratories continue to be constrained by supply chain issues. Enterprise base business margin was down because of the impact of Ascension. Benefitting from the Central Laboratory robust volume increases, biopharma laboratory services margins expanded. The company finished the spin of the Fortrea business recently. Recently, Laboratory Corporation finalized its strategic affiliation with Jefferson Health, a large New Jersey health system. Also, in the quarter, it announced the upcoming step in its long-standing collaboration with Providence Health and Services for acquiring laboratory business in Oregon. Also, it announced a comprehensive lab connection with Legacy Health in Oregon. We give Laboratory Corporation of America Holdings a ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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