NEW YORK – Laboratory Corporation of America reported Thursday that its Q4 2024 revenues were up 10 percent year over year.
Total revenues for the quarter ended Dec. 31, 2024, were $3.33 billion, up from $3.03 billion in the same quarter last year and slightly above the consensus Wall Street estimate of $3.31 billion.
Diagnostics revenues for the fourth quarter were $2.59 billion, up 10 percent from $2.35 billion in the same quarter last year. The company's biopharma lab services business saw revenues rise 10 percent, as well, to $767.0 million from $694.8 million in the fourth quarter of 2023.
Organic diagnostic revenues were up 5 percent year over year, with a decline in COVID-19 testing offset by growth in the company's base testing business. Test volumes, measured by requisitions, were up 7 percent year over year during the quarter. Organic volumes were up 4 percent as acquisition-related volume contributed 3 percentage points of growth and a rise in base testing volumes contributed 5 percent. This was offset by a decline in COVID-19 testing volumes, which contributed a headwind of less than 1 percent.
During a conference call following release of the company's financial results, Labcorp Chairman and CEO Adam Schechter highlighted the company's acquisition activity, noting that in 2024 it had either closed or signed 10 transactions with hospitals and health systems or regional laboratories.
Schechter said the company's lab acquisition pipeline remains strong, adding that the company plans to continue executing as many such deals as it can, assuming that they meet its criteria of being accretive in the first year and returning the cost of capital within two to three years.
He also noted strong growth in the company's oncology, neurology, women's health, and autoimmune testing businesses, which he said are growing at three times the rate of the company's overall diagnostics business.
Schechter also highlighted the development of the company's Plasma Detect minimal residual disease (MRD) test, noting that the test is in 12 trials across several tumor types and that Labcorp expects to begin offering it in the US in 2025 through an "early experience program" for academic medical centers focused on colorectal cancer.
Schechter reiterated Labcorp's opposition to the US Food and Drug Administration's rule on regulation of laboratory-developed tests, though he noted that it will not have a significant financial impact on the company. He also said that Labcorp is working with its trade organization the American Clinical Laboratory Association to "find a better legislative option," for reform of the Protecting Access to Medicare Act (PAMA)--another indication that the industry is moving on from the Saving Access to Laboratory Services Act (SALSA), which has been its preferred legislative vehicle for PAMA reform but which has struggled to move through Congress.
Labcorp reported separately that it has expanded its Raritan, New Jersey laboratory, adding 110,000 square feet of lab space and a new warehouse and logistic hub. The company said the addition will improve diagnostic capabilities, operational efficiency, and patient access across the Northeast.
Labcorp's net income for Q4 2024 was $143.6 million, or $1.70 per share, compared to a net loss of $166.8 million, or $1.95 per share, in the same quarter last year. Adjusted EPS for Q4 2024 was $3.45, beating the consensus Wall Street estimate of $3.39.
The company's SG&A costs were $595.2 million, up 12 percent from $532.9 million in the same quarter last year.
For full-year 2024, revenues were $13.01 billion, up 7 percent from $12.16 billion in 2023 and above the consensus Wall Street estimate of $12.99 billion.
The diagnostics division posted $10.14 billion in revenues, up 8 percent from $9.42 billion in 2023. Full-year revenues in the biopharma lab services business rose 5 percent to $2.92 billion from $2.77 billion.
Acquisitions contributed roughly 3 percent of growth to full-year 2024 revenues, while foreign currency translation contributed a positive impact of less than 1 percent. Organic revenues rose by almost 4 percent year over year. Growth in the company's base business contributed 5 percentage points of growth, while a decline in COVID-19 testing contributed a headwind of 1 percent.
Net income for the year was $747.1 million, or $8.84 per share, compared to $419.2 million, or $4.77 per share, in 2023. Adjusted EPS for full-year 2024 was $14.57, beating the consensus Wall Street estimate of $14.51.
For 2024, Labcorp spent $2.23 billion on SG&A, up 10 percent from $2.02 billion in 2023.
The company finished 2024 with cash and cash equivalents of $1.52 billion.
For 2025, Labcorp projected year-over-year revenue growth of 6.7 percent to 8.0 percent, It expects growth in its diagnostics business of 6.5 percent to 7.7 percent and in its biopharma lab services business of 3.0 percent to 5.0 percent. Adjusted EPS is anticipated to be between $15.60 and $16.40.
In Thursday morning trading on the New York Stock Exchange, Labcorp shares were up 1 percent to $252.91.