Laboratory Corp of America Holdings (NYSE:LH) Q4 FY21 revenue decreased 9.7% Y/Y to $4.06 billion, beating the consensus of $3.90 billion.
- The decrease was due to organic revenue decline of 10.3%, partially offset by acquisitions of 0.6% and foreign currency translation of 0.1%.
- The 10.3% decline in organic revenue was driven by a 15.3% decline in COVID-19 PCR and antibody testing, partially offset by a 5.0% increase in the company's organic Base Business, excluding COVID-19 Testing.
- Also Read: Labcorp Bolsters Liquid Biopsy Capabilities With $450M PGDx Acquisition.
- Adjusted operating income was $902.2 million (margin of 22%) compared to last year's $1.43 billion (margin of 31.8%), reflecting a reduction in COVID-19 Testing.
- Adjusted EPS was $6.77, ahead of the consensus of $5.79.
- At the end of the quarter, the company's cash balance and total debt were $1.5 billion and $5.4 billion, respectively.
- Guidance: For FY22, Labcorp expects overall sales to decline (6.5)% - (1.5)%, with COVID-19 testing down (75)% - (60)% and base business sales increase 7.5% - 10%.
- It anticipates adjusted EPS of $17.25 - $21.25, down from $28.52 in FY21, and against the Wall Street consensus of $18.03.
- Price Action: LH shares are up 3.32% at $291.00 during the premarket session on the last check Thursday.
