Laboratory Corporation of America Holdings (LH) exceeded analysts’ expectations for third-quarter earnings, driven by strong organic revenue growth. However, the company lowered its 2024 guidance due to adverse weather impacts, particularly Hurricane Helene’s effect on North Carolina. Despite the reduced outlook, LabCorp’s stock climbed over 6% on Thursday.
Labcorp Holdings (LH) is poised for long-term growth through strategic investments in cell and gene therapy, expansion into the consumer market, and international growth. The company faces headwinds from macroeconomic uncertainties and currency fluctuations, but its cost-saving initiatives and strong performance in key areas position it for continued success.
Labcorp is working with US health regulators to potentially increase its mpox testing capabilities in response to a new viral strain detected outside of Africa. The company currently processes around 500 tests monthly but can ramp up to 25,000 if necessary. This comes as global health authorities are concerned about the spread of the clade Ib variant, previously found in Central Africa, which has been identified in countries like Sweden and Thailand.
Labcorp has acquired Invitae Corp’s assets for $239 million in a bankruptcy sale. Invitae filed for bankruptcy protection in February, seeking a sale to continue operations as a going concern. Invitae’s estimated assets ranged from $500 million to $1 billion, while liabilities were significantly higher, between $1 billion and $10 billion.
