Laboratory Corp. of America (NYSE:LH), popularly known as LabCorp, just reported results for the first quarter of fiscal year 2014. The company missed Wall Street estimates on both the top and bottom lines, and points to harsh winter weather as the main reason for the shortfalls.
Analysts were looking for adjusted earnings of $1.58 per share on roughly $1.45 billion in revenue.
LabCorp delivered non-GAAP earnings of $1.51 per share on $1.43 in total sales. According to LabCorp's management, the cold winter reduced these adjusted earnings by something like $0.22 per share while reducing revenue by $42 million.
Test volume increased by 2.6% year over year, but the revenue per medical test fell 3.3%. The balance between volume and average revenue is changing due to Medicare payment reductions, growing operations in Canada, and a less profitable test mix.
Looking ahead, LabCorp set its full-year revenue guidance just ahead of analyst projections. The company also raised the midpoint of its non-GAAP earnings projections by 1.6%, but the new view still sits $0.10 below the current analyst consensus.
"We delivered a quarter with solid volume growth and strong earnings despite the greatest weather impact in our company's history," said LabCorp's David King in a prepared statement.