Labcorp Surpasses Q4 Sales Forecasts, Offers Positive Outlook for 2025

Healthcare diagnostics company Labcorp Holdings (NYSE: LH) reported impressive financial results for Q4 CY2024, exceeding Wall Street's revenue expectations.

Q4 Highlights:

- Revenue: $3.33 billion (9.8% YoY growth, 0.6% beat)
- Adjusted EPS: $3.45 (1.7% beat)
- Adjusted EBITDA: $414.4 million (22.6% miss)
- Organic Revenue: 5.4% YoY growth
- Operating Margin: 6.5%, up from -4% in Q4 CY2023
- Free Cash Flow Margin: 20%, up from 13.7% in Q4 CY2023

Full-Year 2025 Guidance:

- Revenue: $13.97 billion (1.4% beat)
- Adjusted EPS: $16 (in line with estimates)

Company Overview:

Labcorp Holdings is a life sciences and diagnostics company providing clinical testing, drug development, and medical testing solutions. The industry benefits from an aging population, increased chronic diseases, and a growing emphasis on preventive healthcare.

Sales Performance:

- Annualized revenue growth of 2.4% over the past five years
- Annualized revenue growth of 4.7% over the past two years

Organic Revenue:

- 2.4% YoY growth over the past two years

Adjusted Operating Margin:

- 19.5% over the past five years
- Decreased by 5.9 percentage points over the past five years

Earnings Per Share (EPS):

- 5.2% compounded annual growth rate over the past five years
- $3.45 in Q4, up from $3.30 in the same quarter last year
- $14.57 full-year EPS forecast for 2025 (9.1% growth)

Conclusion:

Labcorp's positive financial performance suggests a strong business quality. The company's full-year revenue guidance aligns with analysts' estimates. Labcorp remains an attractive investment opportunity for investors interested in the healthcare diagnostics sector.