Laboratory Corp (LH) reported earnings on Wed 24 Oct 2018 (b/o)

** charts after earnings **

 

Laboratory Corp misses by $0.15, reports revs in-line; lowers FY18 guidance 

• Reports Q3 (Sep) earnings of $2.74 per share, which is negatively impacted by ~$0.10/share from the ransomware attack and Hurricane Florence, $0.15 worse than the S&P Capital IQ Consensus of $2.89; revenues rose 8.0% year/year to $2.83 bln vs the $2.84 bln S&P Capital IQ Consensus.
  • The increase in revenue was primarily due to growth from acquisitions of 6.5% and organic growth of 2.8%, partially offset by the negative impact from the disposition of businesses of 1.1% and foreign currency translation of ~30 basis points.
• Co lowers guidance for FY18, sees EPS of $11.25-11.45, excluding non-recurring items, vs. $11.53 S&P Capital IQ Consensus; sees FY18 revs +10.5-11% (implying $11.34-11.44 bln) vs. $11.43 bln S&P Capital IQ Consensus.
  • EPS guidance is lower than the prior guidance of $11.35 to $11.65 primarily due to the negative impact from the Business Disruptions of $0.10 per share as well as third quarter performance.
  • Revs guidance is a narrowing of the range from the prior guidance of 10.5% to 11.5%, and includes the impact from Business Disruptions of 10 basis points, as well as the 10 basis point unfavorable change in currency translation.