What happened

Laboratory Corporation of America (LH -1.53%), also known as Labcorp, had a Thursday to forget on the stock exchange. The lab services specialist saw its share price tumble by nearly 6% on the day, following the release of a dispiriting set of quarterly results.

So what

Labcorp saw a decline in revenue for its third quarter; this came in at $3.6 billion for the period, down from the year-ago figure of $4.1 billion. Non-GAAP (adjusted) net income also slipped across that stretch of time, landing at $90.7 million ($4.68 per share) versus $97.1 million for the third quarter of 2021.

Compounding that dynamic, the top-line figure didn't meet the average analyst expectation. Collectively, prognosticators following the stock were modeling revenue of $3.8 billion. On a slightly brighter note, those pundits had estimated Labcorp would net a per-share, adjusted net profit of $4.67. 

Much of the declines in the company's fundamentals can be chalked up to the coronavirus pandemic. In last year's third quarter, COVID-19 was significantly more of a threat than at present. This led to relatively higher demand for the types of diagnostic and other lab services provided by the company.

Now what

That wasn't the only dynamic dragging down Labcorp's stock in the wake of the earnings release. Investors were also discouraged by a reduction in the company's full-year 2022 guidance. 

Labcorp now believes its revenue will decline by 6% to 7.5% this year over 2021; previously it had expected a 2% to 6% drop. The adjusted earnings outlook also got a chop on the high end, with the new range being $19 to $20.25 per share. Formerly the company was estimating $19 to $21.25 per share.