Labcorp Holdings Inc.
LH
Market Cap$19.1B
Close$
Earnings Call Q4 2024
February 6, 2025 - AI Summary
Strong Financial Performance in Q4 2024: Labcorp reported revenue of $3.3 billion for Q4 2024, reflecting a 10% increase compared to Q4 2023. Diagnostics and biopharma revenues each grew approximately 10%. Adjusted EPS was $3.45, up 5% year-over-year, and free cash flow reached $665 million.
2025 Guidance and Growth Expectations: For 2025, Labcorp expects enterprise revenue growth of 6.7% to 8%, with diagnostics revenue anticipated to grow by 6.5% to 7.7%. The biopharma segment is projected to increase by 3% to 5%. Adjusted EPS guidance for 2025 is set at $15.60 to $16.40, implying a midpoint growth rate of 10%.
Margin Expansion Amid Challenges: Despite a 40 basis point drop in enterprise margins, management expects margin improvements in both diagnostics and biopharma for 2025, driven by organic growth, LaunchPad initiative efficiencies, and the anticipated accretion from Invitae in the second half of the year.
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$343.46
42.5% upside
Current Fair Value
42.5% upsideUndervalued by 42.5% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $19.10 Billion |
|---|---|
| Enterprise Value | $19.92 Billion |
| Dividend Yield | $2.88 (1.26144277517411%) |
| Earnings per Share | $8.92 |
| Beta | 0.97 |
| Outstanding Shares | 83,600,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 25.59 |
|---|---|
| PEG | -13.77 |
| Price to Sales | 1.55 |
| Price to Book Ratio | 2.51 |
| Enterprise Value to Revenue | 1.53 |
| Enterprise Value to EBIT | 18.2 |
| Enterprise Value to Net Income | 26 |
| Total Debt to Enterprise | 0.12 |
| Debt to Equity | 0.29 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Laboratory Corp. Of America Holdings
CEO: David King