Laboratory Corp. of America Holdings (LH) reported Thursday an increase in third-quarter profit that surpassed analysts' estimate, helped by a 4.4% growth in sales and much lower one-time charges. However, the company trimmed down its adjusted earnings guidance for fiscal 2009.
For the third quarter, net earnings attributable to LabCorp rose to $131.4 million or $1.21 per share from $111.9 million or $1.00 per share in the previous year.
The results for the latest quarter included special charges of $2.7 million relating to fees and expenses associated with the company's acquisition of Monogram Biosciences. The prior-year results included restructuring and other special charges of $17.7 million related to the closing of redundant and underutilized facilities.
Excluding items, earnings increased to $1.22 a share from $1.10 a share in the year-ago period. On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $1.15 per share for the third quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased 4.4% to $1.18 billion from $1.14 billion. Twelve analysts were expecting revenue of $1.18 billion for the third quarter.
LabCorp noted that testing volume, measured by accessions, grew 0.7%, and revenue per accession climbed 3.7%. Excluding the consolidation of the company's Ontario, Canada joint venture, revenue advanced 4.3% from the corresponding quarter of 2008.
For the nine-month period, net earnings grew to $400.6 million or $3.67 per share from $346.4 million or $3.06 per share in fiscal 2008. Adjusted earnings increased to $3.74 a share from $3.48 per share. Net sales grew to $3.53 billion from $3.38 billion in the same period last year.
Looking ahead, for the full year, the company expects adjusted earnings to range between $4.84 and $4.89 per share on revenue growth of about 4%. Earlier the company had projected earnings of $4.85 - $4.95 per share. Analysts currently anticipate the company to earn $4.81 per share on revenue of $4.70 billion for 2009.
LH is currently trading at $70.24, up $1.39 or 2.02%, on the NYSE.
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