Labcorp Posts 2025 Guidance Below Analysts' Estimates

Labcorp projects earnings and revenue for 2025 below expectations. The company initiates adjusted guidance with EPS ranging from $15.60 to $16.40, facing a potentially negative impact on stock prices.

Date: 06-02-2025

AI Rating: 4

Earnings Per Share (EPS)
Labcorp's adjusted EPS guidance for fiscal 2025 is projected to be between $15.60 and $16.40. This is notably below the analysts' average estimate of $17.48 per share, indicating a potential disappointment for investors.

Revenue Growth
The projected revenue for Labcorp in 2025 ranges from $13.88 billion to $14.05 billion. This is also below the analysts' expectation of $14.42 billion, suggesting that revenue growth may not meet investor expectations.

Given the guidance and the downward revision relative to analyst expectations, it indicates possible concerns regarding Labcorp's growth trajectory in the coming year. Investors might view this negatively, as the projections fall short of anticipated performance, which could lead to a decrease in stock valuation.

Additionally, Labcorp announced a cash dividend of $0.72 per share, payable to stockholders in March 2025. While dividends can be a positive indicator, the overshadowing guidance may lead investors to focus on the weaker earnings outlook rather than the dividend announcement.

Stocks: LH