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%)

*Net profit includes restructuring charges. Three months ended Dec. 31, 2006 and 2005

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

*Expressed in percentage points.

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%

*12 months ended Dec. 31, 2006 and 2005

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Comparable companies:

  • Quest Diagnostics (NYSE:DGX)
  • Alliance Imaging (NYSE:AIQ)
  • Bio-Reference Labs (NASDAQ:BRLI)
  • Psychemedics Corp. (AMEX:PMD)

Related Foolishness:

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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.