Labcorp reports Wednesday: what analysts expect from LH

what happened

Diagnostics company Labcorp Holdings (ticker LH) will report quarterly results this Wednesday before the market opens, according to StockStory. Last quarter revenue reached $3.73 billion, up 5.8% from a year earlier. The company met analysts' revenue forecasts and clearly beat estimates for its full-year EPS guidance.

For this quarter, the market expects revenue to rise 5.6% year on year, a slowdown from the 8.6% gain in the same period last year. Analysts have broadly kept their estimates unchanged over the past 30 days. Still, Labcorp has missed Wall Street revenue estimates several times over the last two years.

Peers have already reported. Quest posted 10% revenue growth, 1% above expectations, while Elevance Health's revenue was flat, topping estimates by 3.1%. Quest shares rose 1.2% after its results and Elevance Health gained 1.4%. Labcorp shares are up 6.7% over the past month, and the average analyst price target of $345.13 compares with a current price of $330.28.

why it matters

The report matters as a read-through for the whole healthcare services sector. Quest and Elevance results have already set the tone, and the sector's share price gains over the past month point to positive investor sentiment. The key question is whether Labcorp can sustain revenue growth that is clearly slowing.

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