NEW YORK – Laboratory Corporation of America on Thursday reported an 11 percent year-over-year drop in revenue for the third quarter.
Total revenues for the three months ended Sept. 30 were $3.61 billion, down from $4.06 billion in the third quarter of 2021, and below the consensus Wall Street estimate of $3.79 billion.
In diagnostics, revenues were down 16 percent to $2.21 billion compared to $2.62 billion in Q3 2021. Organic revenues were down 16 percent, with a decline in SARS-CoV-2 contributing an 18 percent headwind while growth in the company's base testing business boosted revenues by 2 percent, the Burlington, North Carolina-based firm said. Total base testing was up 4 percent year over year.
Total requisition volume decreased by 10 percent as organic volume declined by 11 percent with volume from acquisitions contributing 1 percent in growth. A drop in SARS-CoV-2 testing volumes accounted for a 13 percent decline in volumes while a rise in base testing upped requisition volumes by 2 percent.
The company's Covance drug development unit saw revenues decline 4 percent year over year to $1.41 billion from $1.46 billion.
During Q3 2022, net earnings attributable to Labcorp were $352.8 million, or $3.90 per share, compared to $587.8 million, or $6.05 per share, in the same quarter last year. Adjusted EPS for the quarter was $4.68 and beat analysts' average estimate of $4.67.
The company's SG&A costs were $510.0 million, down 2 percent from $519.9 million in the same quarter last year.
Labcorp lowered its full-year 2022 guidance to revenue declines of 6 percent to 7.5 percent from a previous projection of 2 percent to 6 percent. It projected adjusted EPS of $19.25 to $20.25 compared to its previous guidance of $19.00 to $21.25. The guidance assumes growth of between 6 percent and 7 percent in the company's base testing business and a decline of between 50 percent and 60 percent in its COVID-19 testing business.
The company ended the quarter with $409.9 million in cash and cash equivalents.