Labcorp's quarterly results beat on diagnostic tests demand
Adds analyst comment in paragraphs 5-6, changes story keyword used by media customers to LABCORP HLDG-RESULTS/
Oct 24 (Reuters) -Laboratory operator Labcorp LH.N beat Wall Street estimates for third-quarter profit and revenue on Thursday as strong demand for diagnostic tests offset a hit from hurricane-led disruptions.
Diagnostic checkups have risen in recent quarters as more people, especially older adults, caught up on surgeries deferred during the pandemic.
Still, Labcorp, cut the top-end of its 2024 adjusted profit forecast to $14.70 per share from $14.90, due to an impact of about 15 cents following weather-related disruptions. The company kept the low end of the forecast at $14.30.
Analysts on average expect profit for the period to be $14.56 per share, according to data compiled by LSEG.
"The bar for expectations felt somewhat low given issues outside of the company's control," Leerink Partners analyst Michael Cherny said.
The negative impact from weather was more than the total reduction in the profit forecast's midpoint, Cherny added.
Analysts have said that several of the company's facilities were in the path of Hurricane Helene and Milton that hit several U.S. cities and towns in September and October.
Labcorp raised the annual revenue growth forecast for its biopharma laboratory services segment, which offers contract research facilities for biopharmaceutical companies, to between 4.7% and 5.6% from its prior range of 3.7% to 5%.
Contract research firms saw reduced spending from biotech clients last year, but recent interest rate cuts could improve the funding environment for biotechs.
Labcorp's sales rose 7.4% to $3.28 billion in the third quarter, beating analysts' average estimate of $3.26 billion.
On an adjusted basis, the company earned $3.50 per share, above estimates of $3.48.
Reporting by Puyaan Singh in Bengaluru; Editing by Maju Samuel
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