On Feb. 15, laboratory testing firm LabCorp (NYSE:LH) released fourth-quarter and year-end results for the period ended Dec. 31. Here are the quick-and-dirty details for the quarter.
- Total sales grew 9.3%, ahead of analyst expectations, thanks to a 5.6% increase in testing volumes and 3.7% increase in price.
- Diluted earnings advanced an impressive 26.6%, including restructuring charges primarily related to the announced retirement of the CEO.
- Reported operating cash flow was $170.2 million
- Management is projecting 2007 operating cash flow of $690 million-$710 million, and net sales growth of 11%-13%.
- LabCorp is a crowd favorite in Motley Fool CAPS, our stock-rating service. The company has the top five-star ranking.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$874 |
$899 |
$822 |
9.3% |
|
Net Profit |
-- |
$104 |
$89 |
16.6% |
|
EPS |
$0.72 |
$0.81 |
$0.64 |
26.6% |
|
Weighted Ave. Shares |
-- |
129 |
142 |
(9.2%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
42.18% |
40.44% |
1.74 |
|
Operating Margin |
18.11% |
16.51% |
1.60 |
|
Net Margin |
12.06% |
10.81% |
1.25 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$187 |
$63 |
196.2% |
|
Accounts Rec. |
$541 |
$493 |
9.7% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Long-Term Debt |
$1,157 |
$1,147 |
0.8% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$632 |
$574 |
10.1% |
|
Capital Expenditures |
$116 |
$94 |
23.8% |
|
Free Cash Flow |
$516 |
$481 |
7.4% |
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Comparable companies:
- Quest Diagnostics (NYSE:DGX)
- Alliance Imaging (NYSE:AIQ)
- Bio-Reference Labs (NASDAQ:BRLI)
- Psychemedics Corp. (AMEX:PMD)
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
LabCorp is a recommendation of Motley Fool Stock Advisor. Discover why with a free 30-day trial.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
