Laboratory Corp of America HoldingsLH posted Q3 revenues of $3.61 billion, a decrease of 11.2% Y/Y, missing the consensus of $3.79 billion.
The 10.7% decrease in organic revenue was driven by an 11.8% decrease in COVID-19 Testing, partially offset by a 1.1% increase in the company’s organic Base Business.
“We continue to manage inflationary headwinds and labor constraints through our LaunchPad initiatives. And, we are accelerating the planned spin-off of our Clinical Development business to mid-2023 pending customary approvals,” said Adam Schechter, chairman & CEO.
Adjusted operating margin compressed from 22.3% to 16.3%.
Diagnostic sales decreased 15.7% to $2.21 billion. Total volume (measured by requisitions) decreased by 10.3%.
The company posted an adjusted EPS of $4.68 versus $6.82 a year ago and a consensus of $4.67.
Guidance: Labcorp revised FY22 adjusted EPS guidance to $19.25-$20.25 compared to the prior range of $19.00-$21.25.
The company expects COVID-19 testing sales to decline (59.0%)-(57.0%) versus (60.0%)-(50.0%) expected earlier.
Price Action: LH shares are down 6.28% at $215.50 on the last check Thursday.
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