Laboratory Corporation of America Earnings: Could Not Create More Profits

Rising costs did not help S&P 500 (NYSE:SPY) component Laboratory Corporation of America Holdings (NYSE:LH) in the first quarter as profit dropped from a year earlier. Laboratory Corp. of America Holding provides testing services used by the medical profession in patient diagnosis and in the monitoring and treatment of disease.

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Laboratory Corporation of America Holdings Earnings Cheat Sheet for the First Quarter

Results: Net income for Laboratory Corporation of America Holdings fell to $127.1 million ($1.23/share) vs. $132.7 million ($1.25/share) a year earlier. A decline of 4.2% from the year earlier quarter.

Revenue: Rose 14.6% to $1.37 billion YoY.

Actual vs. Wall St. Expectations: LH fell short of the mean analyst estimate of $1.45/share. Estimates ranged from $1.26 per share to $1.52 per share.

Quoting Management: “We delivered strong revenue, earnings and free cash flow, despite severe weather throughout the country. The core business performed extremely well and we are especially pleased with the performance of Genzyme Genetics; both of these will be important components of our future growth,” said David P. King, Chairman and Chief Executive Officer.

Key Stats:

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

Over the last five quarters, revenue has increased 8.2% on average year over year. The biggest increase came in the most recent quarter, when revenue rose 14.6% from the year earlier quarter.

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

Today’s Performance: Shares of LH are trading at $96.58, down 0.22% from the previous closing price of $96.79.

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