By Ron Shinkman, Editor, Laboratory Industry Report
With its second quarter earnings report, LabCorp has officially eclipsed Quest Diagnostics as the nation’s largest laboratory company.
LabCorp reported net income for the second quarter ending June 30 of $168.4 million on revenue of $2.2 billion. Quest reported net income of $129 million on revenue of $1.93 billion.
LabCorp leapfrogged Quest with its recent acquisition of pharmaceutical testing firm Covance. The acquisition contributed $621 million in revenues during the quarter, LabCorp Chief Financial Officer Glenn Eisenberg told analysts during a recent conference call.
LabCorp’s earnings per share of $2.09 also beat the consensus of analysts, which was $2.03, although the overall strength of Covance’s performance raised some concerns among analysts.
“We are extremely pleased with our results this quarter, in which we began to see the power of our combined businesses,” said LabCorp Chief Executive Officer Dave King in a statement. “We delivered impressive growth, as well as record revenue, earnings and free cash flow to our shareholders. We remain focused on executing our long-term growth strategy, and delivering on our mission of improving health and improving lives.”
A full report on LabCorp’s and Quest second quarter earnings will be in the next issue of Laboratory Industry Report.