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Burlington, North Carolina-based Labcorp Holdings Inc. (LH) operates in the healthcare diagnostics and biopharma sectors. With a market cap of $18.2 billion, the company offers comprehensive clinical laboratory services and drug development support, helping healthcare providers and patients make informed decisions. The company is scheduled to release its fiscal Q3 earnings results before the market opens on Thursday, Oct. 24.
Ahead of this event, analysts expect the medical laboratory operator to report a profit of $3.50 per share, up 3.6% from $3.38 per share in the previous year's quarter. The company has surpassed Wall Street's bottom-line estimates in the past four quarters. In the most recent quarter, the company exceeded the consensus estimate by 4.2%.
For fiscal 2024, analysts expect LH to report EPS of $14.56, up 7.4% from $13.56 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 8.5% year-over-year to $15.80.
Shares of Labcorp Holdings dipped nearly 5% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 20.6% rise and the Health Care Select Sector SPDR Fund's (XLV) 11.2% increase over the same period.
Labcorp shares surged 8.3% on Aug. 1 after the company reported Q2 earnings that beat expectations, with adjusted profit of $3.94 per share and revenue of $3.2 billion. Additionally, Labcorp raised its full-year sales growth forecast, driven by strong demand for diagnostic tests in the U.S. post-pandemic recovery. Despite lowering its profit outlook to $14.30 per share - $14.90 per share due to charges from the $239 million acquisition of Invitae, investors were encouraged by the revenue beat and optimistic sales forecast.
Analysts' consensus rating on LH stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 16 analysts covering the stock, opinions include 10 "Strong Buys," one "Moderate Buy," and five "Holds." The average analyst price target of $254 suggests a 17.6% potential upside from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
