Revenue Growth and Performance: Laboratory Corporation of America Holdings reported Q1 2025 revenue of $3.3 billion, reflecting a 5.3% year-over-year increase. The Diagnostics Laboratories business grew by 6%, aided by a strong rebound in volume in March after weather-related impacts in the earlier months of the quarter. The company reaffirmed its full-year revenue growth guidance at 6.7% to 8%.
Earnings and Margin Expectations: Adjusted earnings per share (EPS) increased 4% year-over-year to $3.84. The company expects adjusted EPS for 2025 to be in the range of $15.70 to $16.40, indicating a growth rate of about 10% at the midpoint. While adjusted operating margin for the Diagnostics segment declined 60 basis points to 16.3%, the company expects margins to expand throughout the year through cost-saving initiatives and improvements from acquisitions.
Integration of Invitae: Invitae's integration is progressing better than expected, with the segment on track to achieve around 10% revenue growth and become slightly accretive to earnings for the full year. The performance from Invitae was negatively impacted by weather and ongoing integration costs, but improvements are anticipated as the integration matures.