Labcorp Holdings Inc (LH, Financial), a global leader in laboratory services, announced its financial results for the fourth quarter and full year of 2024 on February 6, 2025. The company reported a substantial increase in revenue and earnings, driven by both organic and inorganic growth. Labcorp also provided guidance for 2025, projecting continued growth across its Diagnostics Laboratories and Biopharma Laboratory Services segments.
Positive Highlights
- Q4 revenue increased to $3.33 billion from $3.03 billion in the previous year.
- Full-year revenue rose to $13.01 billion, up from $12.16 billion in 2023.
- Q4 diluted EPS improved to $1.70 from a loss of $1.95 in the previous year.
- Full-year adjusted EPS increased to $14.57 from $13.56 in 2023.
- Free cash flow for Q4 was $665.1 million, up from $412.4 million in the previous year.
- Announced 10 transactions and launched new tests in key specialty areas in 2024.
Negative Highlights
- Adjusted operating margin slightly decreased due to Invitae and other factors.
- Foreign exchange had a minor negative impact on revenue growth.
Financial Analyst Perspective
Labcorp's financial performance in 2024 demonstrates robust growth, with significant improvements in revenue, earnings, and cash flow. The company's strategic acquisitions and new test launches have strengthened its market position. The guidance for 2025 indicates continued confidence in growth, with expected revenue between $13.88 billion and $14.05 billion and adjusted EPS between $15.60 and $16.40. Investors should note the company's focus on expanding its presence in high-growth areas such as oncology and women's health.
Market Research Analyst Perspective
Labcorp's strategic initiatives in 2024, including acquisitions and new test launches, have positioned the company well for future growth. The company's focus on key specialty areas and partnerships with hospitals and health systems enhances its competitive edge. The projected growth in revenue and earnings for 2025 reflects Labcorp's strong market position and ability to adapt to changing healthcare needs. The company's efforts to expand its test menu and improve clinical trial speed are likely to drive further growth.
Frequently Asked Questions
Q: What was Labcorp's revenue for Q4 2024?
A: Labcorp's Q4 2024 revenue was $3.33 billion.
Q: How much did Labcorp's full-year revenue increase in 2024?
A: Labcorp's full-year revenue increased to $13.01 billion from $12.16 billion in 2023.
Q: What is Labcorp's guidance for 2025 revenue?
A: Labcorp's 2025 revenue guidance is between $13.88 billion and $14.05 billion.
Q: What new tests did Labcorp launch in 2024?
A: Labcorp launched a Multiple Sclerosis Monitoring Profile, a new H5 bird flu molecular test, and a companion diagnostic assay for gastric cancer, among others.
Read the original press release here.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
