Laboratory Corp. of America Holdings
The 10-second takeaway
For the quarter ended June 30 (Q2), Laboratory Corp. of America Holdings met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew slightly. GAAP earnings per share grew.
Margins contracted across the board.
Laboratory Corp. of America Holdings tallied revenue of $1.47 billion. The 20 analysts polled by S&P Capital IQ foresaw sales of $1.46 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.80. The 22 earnings estimates compiled by S&P Capital IQ forecast $1.80 per share. Non-GAAP EPS of $1.80 for Q2 were 1.7% higher than the prior-year quarter's $1.77 per share. GAAP EPS of $1.62 for Q2 were 3.8% higher than the prior-year quarter's $1.56 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.3%, 140 basis points worse than the prior-year quarter. Operating margin was 18.3%, 130 basis points worse than the prior-year quarter. Net margin was 10.3%, 50 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.45 billion. On the bottom line, the average EPS estimate is $1.80.
Next year's average estimate for revenue is $5.79 billion. The average EPS estimate is $7.08.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 656 members out of 677 rating the stock outperform, and 21 members rating it underperform. Among 215 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 211 give Laboratory Corp. of America Holdings a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Laboratory Corp. of America Holdings is hold, with an average price target of $99.65.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Laboratory of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.