Laboratory Corp of America Holdings Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Laboratory Corporation of America Holdings (NYSE:LH) will unveil its latest earnings on Thursday, July 21, 2011. Laboratory Corp. of America Holding provides testing services used by the medical profession in patient diagnosis and in the monitoring and treatment of disease.

Laboratory Corporation of America Holdings Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.62 per share, a rise of 11% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.60. Between one and three months ago, the average estimate moved up, and has risen from $1.61 during the last month. For the year, analysts are projecting profit of $6.32 per share, a rise of 5.7% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 16 cents, reporting net income of $1.60 per share against a mean estimate of profit of $1.44 per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.39 billion in revenue this quarter, a rise of 12.1% from the year ago quarter. Analysts are forecasting total revenue of $5.57 billion for the year, a rise of 11.4% from last year’s revenue of $5 billion.

Analyst Ratings: Analysts are bullish on Laboratory Corporation of America Holdings as 10 analysts rate it as a buy, one rates it as a sell and 11 rate it as a hold.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 14.6% to $1.37 billion in first quarter. The figure rose 11.2% in the fourth quarter of the last fiscal year from the year earlier, climbed 7.7% in the third quarter of the last fiscal year from the year-ago quarter and 4.2% in the second quarter of the last fiscal year.

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 4.2% from the year earlier quarter, while the figure dropped 7.6% in the fourth quarter of the last fiscal year.

Competitors to Watch: Quest Diagnostics Inc. (NYSE:DGX), Orchid Cellmark, Inc. (NASDAQ:ORCH), Clarient, Inc. (NASDAQ:CLRT), Bio-Reference Laboratories, Inc. (NASDAQ:BRLI), Psychemedics Corp. (NASDAQ:PMD), MEDTOX Scientific, Inc. (NASDAQ:MTOX), Enzo Biochem, Inc. (NYSE:ENZ), RadNet Inc. (NASDAQ:RDNT).

Stock Price Performance: During May 18, 2011 to July 15, 2011, the stock price had fallen $4.30 (-4.3%) from $100.03 to $95.73. The stock price saw one of its best stretches over the last year between March 23, 2011 and April 6, 2011 when shares rose for 11-straight days, rising 7.9% (+$6.87) over that span. It saw one of its worst periods between May 31, 2011 and June 8, 2011 when shares fell for seven-straight days, falling 4.8% (-$4.80) over that span. Shares are up $7.81 (+8.9%) year to date.

(Source: Xignite Financials)

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