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Labcorp Holdings Inc. (LH), headquartered in Burlington, North Carolina, provides laboratory services. Valued at $19.3 billion by market cap, the company specializes in providing clinical lab tests for allergies, genetics and genomics, colorectal cancer, diabetes, chronic kidney disease, and pregnancy, as well as clinical trials for oncology and COVID-19. The global leader of innovative and comprehensive laboratory services is expected to announce its fiscal first-quarter earnings for 2025 before the market opens on Tuesday, Apr. 29.
Ahead of the event, analysts expect LH to report a profit of $3.75 per share on a diluted basis, up 1.9% from $3.68 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect LH to report EPS of $16.01, up 9.9% from $14.57 in fiscal 2024. Its EPS is expected to rise 9.6% year over year to $17.54 in fiscal 2026.
LH stock has outperformed the S&P 500’s ($SPX) 2.1% gains over the past 52 weeks, with shares up 5.5% during this period. Similarly, it outperformed the Health Care Select Sector SPDR Fund’s (XLV) 4.7% dip over the same time frame.
Labcorp has enhanced its testing capabilities in neurodegenerative diseases and oncology, introducing new blood-based biomarkers and diagnostic assays. The acquisitions of select assets from Invitae and other companies have further strengthened its specialty testing offerings. The company continues to expand its Labcorp OnDemand platform and acquire new laboratory services to broaden its reach and expertise in the healthcare industry. These strategic moves are expected to drive significant growth and contribute to Labcorp's success in 2025.
On Feb. 6, LH shares closed down marginally after reporting its Q4 results. Its adjusted EPS of $3.45 exceeded Wall Street expectations of $3.40. The company’s revenue was $3.33 billion, topping Wall Street forecasts of $3.31 billion. LH expects full-year adjusted EPS in the range of $15.60 to $16.40, and expects revenue to be between $13.9 billion and $14.1 billion.
Analysts’ consensus opinion on LH stock is bullish, with a “Strong Buy” rating overall. Out of 17 analysts covering the stock, 14 advise a “Strong Buy” rating, and three give a “Hold.” LH’s average analyst price target is $277.88, indicating a potential upside of 27.1% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
