Will Covance Drug Development Drive LabCorp (LH) Q4 Earnings?
Zacks Investment Research | Jan 30, 2018 09:48PM ET
Laboratory Corporation of America Holdings (NYSE:LH) , also known as LabCorp, is slated to report fourth-quarter 2017 results, before market opens on Feb 6. Last quarter, the company delivered a positive earnings surprise of 2.9%. It has an average earnings beat of 2.3% for the trailing four quarters. Let's see how things are shaping up for this announcement.
Factors at Play
Similar to last quarter, LabCorp is expected to gain on strength in the LabCorp Diagnostics segment in the fourth quarter Notably, in the third quarter, revenues at this segment grew primarily banking on favorable price, mix, tuck-in acquisitions and organic volume.
After several quarters of a weak show, Covance Drug Development has started to report revenue growth from the third quarter, on the back of the Chiltern acquisition, strong organic growth and favorable foreign currency translation. Chiltern has added highly complementary capabilities to LabCorp’s offerings, including scale expansion in Asia Pacific, broader reach in the fast-growing emerging and mid-tier biopharma customer segment and expertise in oncology drug development. All these factors should continue to benefit LabCorp’s Covance Drug Development topline in the yet-to-be reported quarter as well.
Laboratory Corporation of America Holdings Price and EPS Surprise
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