Laboratory of America Holdings Earnings: Here’s Why Shares are Down Now

Laboratory Corp. of America Holdings (NYSE:LH) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.03%.

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Laboratory Corp. of America Holdings Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $1.74 in the quarter as EPS of $1.74 in the year-earlier quarter.

Revenue: Rose 1.24% to $1.44 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Laboratory Corp. of America Holdings reported adjusted EPS income of $1.74 per share. By that measure, the company missed the mean analyst estimate of $1.77. It missed the average revenue estimate of $1.45 billion.

Quoting Management: “We delivered another solid quarter, highlighted by revenue growth of approximately 3.0% per day,” said David P. King, Chairman and Chief Executive Officer. “We continue to execute our strategic initiatives, and we remain pleased with the performance of our business, particularly Medtox, our most recent acquisition.”

Key Stats (on next page)…

Revenue increased 2.54% from $1.41 billion in the previous quarter. EPS increased 6.75% from $1.63 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.85 to a profit $1.81. For the current year, the average estimate has moved down from a profit of $7.28 to a profit of $7.11 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]