By Sahil Pandey
July 30 (Reuters) - Laboratory operator Labcorp raised its annual profit forecast and posted better-than-expected second-quarter results on Thursday, as steady demand for diagnostic testing
and growth in its drug-development services business boosted performance.
Shares of the company fell about 6% in premarket trading.
Here are more details:
• The company's diagnostics business has benefited from specialty testing and laboratory management agreements, while improved pharmaceutical and biotechnology spending has supported its research services business.
• Leerink Partners analyst Michael Cherny said investors were likely focused on softer-than-expected organic growth in Labcorp's Diagnostics Laboratories segment after rival Quest Diagnostics set a higher bar with last week's results.
• Revenue at Labcorp's Diagnostics Laboratories segment grew 5.5% to $2.90 billion, slightly below analysts' expectation of $2.91 billion.
• Peer Quest Diagnostics last week raised its full-year profit forecast after demand for routine diagnostic testing helped the company beat second-quarter estimates.
• Labcorp raised its 2026 adjusted earnings forecast to $18.10 to $18.55 per share from $17.70 to $18.35 previously.
• The midpoint of the new range, $18.33, is above analysts' estimate of $18.01 per share, according to data compiled by LSEG.
• The company lifted its annual revenue forecast to a range of $14.71 billion to $14.83 billion from its previous projection of $14.65 billion to $14.80 billion. Analysts expect revenue of $14.71 billion.
• Revenue at its Biopharma Laboratory Services segment rose 6.5% to $836.2 million, exceeding estimates of $797.3 million.
• Overall second-quarter revenue rose 5.8% to $3.73 billion, above estimates of $3.71 billion. Adjusted earnings per share of $4.99 topped expectations of $4.78.
(Reporting by Sahil Pandey in Bengaluru; Editing by Tasim Zahid and Diti Pujara)
