Traders checklist: Laboratory Corporation of America Holdings (NYSE: LH)
On 30 Oct 2019, Laboratory Corporation of America Holdings (NYSE: LH) stock observed trading -6.81% off 52-week high price. On the other end, the stock has been noted 39.29% away from low price over the last 52-weeks. The stock disclosed a move of -1.12% away from 50 day moving average and 3.32% away from 200 day moving average. Moving closer, we can see that shares have been trading -0.04% off 20-day moving average. It has market cap of $16245.56M.
LabCorp® (LH) recently reported results for the third quarter ended September 30, 2019, and updated 2019 guidance.
“LabCorp delivered another excellent quarter, with solid results driven by strong demand across both businesses,” stated David P. King, chairman and CEO of LabCorp. “The enterprise posted robust gains in revenue and adjusted earnings per share, and we generated $363M in free cash flow as we continued to weave the two businesses together into a powerful unified whole. We continued our disciplined capital allocation program, repurchasing $100M of shares and successfully executing several tuck-in acquisitions. Covance excelled across all measures and, despite the market headwinds we are experiencing, Diagnostics turned in another impressive performance. We occupy a unique, differentiated market position in life sciences, giving us great optimism about our prospects to grow the business and create shareholder value for the rest of 2019 and for many years to come.”
Third Quarter Results
Revenue for the quarter was $2.93B, a raise of 3.4% over $2.83B in the third quarter of 2018. The increase in revenue was primarily Because of acquisitions of 2.8% and organic growth of 2.2% (which includes the negative impact from PAMA of 0.9%), partially offset by the disposition of businesses of 1.3% and negative foreign currency translation of 0.3%.
Operating income for the quarter was $339.9M, or 11.6% of revenue, contrast to $343.4M, or 12.1%, in the third quarter of 2018. The decrease in operating income and margin was primarily Because of lower Medicare and Medicaid pricing as a result of PAMA and higher personnel costs (primarily driven by merit increases and one additional payroll day that predominantly influenced LabCorp Diagnostics), partially offset by strong demand and LaunchPad savings. The Company recorded restructuring charges, special items, and amortization, which together totaled $90.6M in the quarter, contrast to $85.7M during the same period in 2018. Adjusted operating income (not including amortization, restructuring charges, and special items) for the quarter was $430.5M, or 14.7% of revenue, contrast to $429.1M, or 15.2%, in the third quarter of 2018. Not Including the negative impact from PAMA, adjusted operating income grew $28.1M over last year.
Net earnings for the quarter were $220.7M, contrast to $318.8M in the third quarter of 2018. Diluted EPS were $2.25 in the quarter, a decrease of 27.4% contrast to $3.10 in the same period in 2018. The decline in net earnings and diluted EPS in the quarter was Because of a net gain on the disposition of the Food Solutions business in the third quarter of 2018, which increased net earnings and diluted EPS by $125.3M and $1.22 per share, respectively. Adjusted EPS (not including amortization, restructuring charges, and special items) were $2.90 in the quarter, a raise of 5.8% over $2.74 in the third quarter of 2018.
Operating cash flow for the quarter was $455.6M, contrast to $251.9M in the third quarter of 2018. The increase in operating cash flow was primarily Because of higher cash earnings and favorable working capital. Capital expenditures totaled $92.6M, contrast to $97.9M a year ago. As a result, free cash flow (operating cash flow less capital expenditures) was $363.0M, contrast to $154.0M in the third quarter of 2018.
At the end of the quarter, the Company’s cash balance and total debt were $361.1M and $6.6B, respectively. During the quarter, the Company invested $149.2M in acquisitions and repurchased $100.0M of stock, representing about 0.6M shares. As of September 30, 2019, the Company had $950.0M of authorization remaining under its share repurchase program.
The USA based company Laboratory Corporation of America Holdings moved with change of 0.72% to $166.28 with the total traded volume of 322805 shares in recent session versus to an average volume of 570.24K. The stock was observed in the 5 days activity at -1.64%. The one-month performance of stock was -1.00%. LH’s shares are at 0.17% for the quarter and driving a 5.17% return over the course of the past year and is now at 31.59% since this point in 2018. Right now, the stock beta is 1.02. The average volatility for the week and month was at 2.10% and 1.79% respectively. There are 97.7M shares outstanding and 97.34M shares are floated in market.
Vivian Moore – Health and Biotech
I am Vivian Moore, I have done my bachelor’s in English literature, and further on I did my master’s in Medicines. My most preferred genre of writing is health and biotech. I have been writing from the past 6 years about articles, web content, and blogs. In my career and education, I like to play along with work. I have also been a teacher in the past for 2 years. I use to teach business and technical writing in a very famous university. However, most recently I am working as an instructor, designer, and training writer. I enjoy socializing a lot. I am a very big extrovert when it comes to nature. A part of all this I enjoy exploring the world and traveling makes me happy.
