On April 26, lab-testing firm LabCorp
- Net sales improved 13.7%, as LabCorp won the battle for a new UnitedHealth Group
(NYSE:UNH) contract. In the company's humble opinion, the quarter was "outstanding by every measure." - Reported diluted earnings grew 28.9%, thanks to strong sales, higher operating margins, and share buybacks.
- For the full year, management expects revenues to grow 12% to 14% and diluted earnings of $4.11 to $4.27 -- above current analyst projections.
- LabCorp has five stars -- the highest rating -- in Motley Fool CAPS. Smaller peer Bio-Reference Labs
(NASDAQ:BRLI) carries a four-star rating, while MEDTOX(NASDAQ:MTOX) also has a five-star rating.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$975 |
$999 |
$879 |
13.7% |
|
Net Profit |
-- |
$123 |
$102 |
20.2% |
|
EPS |
$0.93 |
$0.98 |
$0.76 |
28.9% |
|
Diluted Shares |
-- |
125 |
137 |
(8.4%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
42.22% |
42.42% |
(0.20) |
|
Operating Margin |
20.37% |
19.21% |
1.16 |
|
Net Margin |
12.27% |
11.60% |
0.67 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$77 |
$71 |
8.5% |
|
Accounts Rec. |
$610 |
$522 |
16.8% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Long-Term Debt |
$1,159 |
$1,179 |
(1.7%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$186 |
$179 |
4% |
|
Capital Expenditures |
$41 |
$21 |
96.2% |
|
Free Cash Flow |
$145 |
$158 |
(8.1%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Warren Buffett's Priceless Investment Advice
- LabCorp Takes Names
- 70 Times Better Than the Next Microsoft
UnitedHealth and LabCorp are both recommendations of Motley Fool Stock Advisor. Microsoft and UnitedHealth are recommended in Inside Value.
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.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. The Fool has an ironclad disclosure policy. Feel free to email him with feedback or to discuss any companies mentioned further.
