Laboratory Corp. of America Holdings Increases Sales but Misses Estimates on Earnings

Laboratory Corp. of America Holdings (NYSE: LH  ) reported earnings on Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Laboratory Corp. of America Holdings met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share dropped.

Margins shrank across the board.

Revenue details
Laboratory Corp. of America Holdings logged revenue of $1.41 billion. The 22 analysts polled by S&P Capital IQ expected to see sales of $1.39 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.54. The 22 earnings estimates compiled by S&P Capital IQ forecast $1.62 per share. GAAP EPS of $1.26 for Q4 were 6.0% lower than the prior-year quarter's $1.34 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 38.3%, 190 basis points worse than the prior-year quarter. Operating margin was 16.8%, 200 basis points worse than the prior-year quarter. Net margin was 8.6%, 130 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.45 billion. On the bottom line, the average EPS estimate is $1.80.

Next year's average estimate for revenue is $5.77 billion. The average EPS estimate is $7.28.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 671 members out of 692 rating the stock outperform, and 21 members rating it underperform. Among 216 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 213 give Laboratory Corp. of America Holdings a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Laboratory Corp. of America Holdings is hold, with an average price target of $93.33.

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