A Glimpse of Laboratory Corp's Earnings Potential
Laboratory Corp (NYSE:LH) is preparing to release its quarterly earnings on Thursday, 2025-07-24. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Laboratory Corp to report an earnings per share (EPS) of $4.16.
Investors in Laboratory Corp are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Overview of Past Earnings
In the previous earnings release, the company missed EPS by $0.33, leading to a 0.25% increase in the share price the following trading session.
Here's a look at Laboratory Corp's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 4.17 | 3.39 | 3.49 | 3.78 |
| EPS Actual | 3.84 | 3.45 | 3.50 | 3.94 |
| Price Change % | 0.0% | -1.0% | -1.0% | 1.0% |
Performance of Laboratory Corp Shares
Shares of Laboratory Corp were trading at $252.07 as of July 22. Over the last 52-week period, shares are up 21.69%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Insights on Laboratory Corp
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Laboratory Corp.
Analysts have provided Laboratory Corp with 8 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $276.5, suggesting a potential 9.69% upside.
Understanding Analyst Ratings Among Peers
The analysis below examines the analyst ratings and average 1-year price targets of Quest Diagnostics, Hims & Hers Health and Chemed, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Quest Diagnostics, with an average 1-year price target of $188.33, suggesting a potential 25.29% downside.
- Analysts currently favor an Neutral trajectory for Hims & Hers Health, with an average 1-year price target of $40.4, suggesting a potential 83.97% downside.
- Analysts currently favor an Outperform trajectory for Chemed, with an average 1-year price target of $654.67, suggesting a potential 159.72% upside.
Analysis Summary for Peers
The peer analysis summary offers a detailed examination of key metrics for Quest Diagnostics, Hims & Hers Health and Chemed, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Labcorp Hldgs | Neutral | 5.30% | $948M | 2.60% |
| Quest Diagnostics | Neutral | 12.09% | $863M | 3.20% |
| Hims & Hers Health | Neutral | 110.67% | $430.69M | 9.65% |
| Chemed | Outperform | 9.79% | $216.41M | 6.24% |
Key Takeaway:
Laboratory Corp ranks highest in Gross Profit among its peers. It is in the middle for Revenue Growth and Return on Equity.
Delving into Laboratory Corp's Background
Labcorp is one of the nation's two largest independent clinical laboratories, with roughly 20% of the independent lab market. The company operates approximately 2,000 patient-service centers, offering a broad range of 5,000 clinical lab tests, ranging from routine blood and urine screens to complex oncology and genomic testing.
Unraveling the Financial Story of Laboratory Corp
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Positive Revenue Trend: Examining Laboratory Corp's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.3% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 6.36%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.6%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Laboratory Corp's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.18% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Laboratory Corp's debt-to-equity ratio surpasses industry norms, standing at 0.78. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
To track all earnings releases for Laboratory Corp visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
