Labcorp raised its full-year revenue and adjusted earnings forecasts on October 28 after reporting third-quarter revenue growth of 6.9%, according to the company's results release.
Revenue for the quarter ended September 30 reached $3.81 billion, compared with $3.56 billion a year earlier. Diluted earnings per share rose to $3.22 from $3.12. Adjusted earnings, which exclude specified items, increased to $4.78 per share from $4.18.
Operating income was $402.1 million, up from $396.6 million. That increase was smaller than revenue growth: the reported operating margin declined to 10.6% from 11.1%. Adjusted operating margin rose to 15% from 14.4%.
For the full year, Labcorp now projects revenue growth of 5.9% to 6.7%, raising the midpoint by half a percentage point. It increased its adjusted earnings forecast to $18.30–$18.70 per share from $18.10–$18.55.
The company maintained its free cash flow forecast at $1.24 billion to $1.36 billion. The annual figures are management projections, and adjusted earnings supplement results prepared under standard accounting rules.
Sources: Labcorp third-quarter results release.