Thursday, Laboratory Corp. of America Holdings or LabCorp (LH) posted higher profit in the first quarter. On a per share basis, earnings rose from last year and topped the Street view. Further, the company reaffirmed its financial forecast for fiscal 2009.
The Burlington, North Carolina-based company, which offers clinical assays ranging from routine blood analyses to HIV and genomic testing, said first-quarter net income rose to $132.8 million or $1.22 per share from $130.3 million or $1.14 per share in the prior year quarter.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $1.17 per share. Analysts' estimates typically exclude special items.
Quarterly net sales amounted to $1.16 billion, up 4.8% from the previous year's sales of $1.10 billion, and breezed past ten Wall Street analysts' consensus revenue estimate of $1.13 billion for the quarter.
Testing volume, measured by accessions, increased 3.9%, and revenue per accession increased 0.8% from last year. Excluding the consolidation of the company's Ontario, Canada joint venture, revenue increased 5.9%, with volume increasing 2.6% and revenue per accession increasing 3.2%.
Looking ahead, the company still expects fiscal 2009 earnings, excluding the impact of any share repurchase activity after December 31, 2008, to be in the range of $4.75 - $4.95 per share, with revenues to grow between 2.0% and 4.0%. Analysts are looking for earnings of $4.86 per share on revenues of $4.64 billion for fiscal 2009.
Operating cash flow, excluding any transition payments to UnitedHealthcare, is projected to be about $800 million, and capital expenditures to be about $130 million. The operating cash flow guidance includes a $54.8 million reduction due to required contributions to the company's defined benefit retirement plan.
Among LabCorp's rivals, Quest Diagnostics Inc (DGX) reported an increase in earnings for the first quarter, which exceeded analysts' consensus estimates. Net income attributable to stockholders was $167.1 million or $0.88 per share, compared with $139.6 million or $0.71 per share in the prior-year quarter. Citing strong performance in the first quarter, Quest raised its earnings per share from continuing operations guidance for fiscal 2009 to between $3.65 and $3.75.
Another peer, BioReference Laboratories Inc. (BRLI), announced an increase in first-quarter pro forma net income, helped chiefly by revenues from esoteric testing. Results for the quarter came in ahead of consensus estimate by a penny. Net income rose to $3.60 million or $0.26 per share from $2.21 million or $0.16 per share in the previous year. Pro forma net income increased to $2.66 million or $0.19 per share from $2.21 million or $0.16 per share in the prior year.
LH is currently trading at $61.04, down $1.73 pr 2.76%. In the past 52 weeks, the stock has been trading between $52.93 and $78.29.
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