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Compared to Estimates, LabCorp (LH) Q1 Earnings: A Look at Key Metrics

LabCorp (LH) reported $3.78 billion in revenue for the quarter ended March 2023, representing a year-over-year decline of 3.1%. EPS of $3.82 for the same period compares to $6.11 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $3.75 billion, representing a surprise of +0.87%. The company delivered an EPS surprise of -4.26%, with the consensus EPS estimate being $3.99.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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Here is how LabCorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenues- Drug Development: $1.40 billion versus $1.52 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -4% change.

  • Revenues- Diagnostics: $2.38 billion versus the four-analyst average estimate of $2.28 billion. The reported number represents a year-over-year change of -2.9%.

  • Adjusted Operating Income- Drug Development: $123.90 million compared to the $185.31 million average estimate based on three analysts.

  • Adjusted Operating Income- Diagnostics: $441.50 million compared to the $558.66 million average estimate based on three analysts.

View all Key Company Metrics for LabCorp here>>>

Shares of LabCorp have returned +5.8% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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