How did Labcorp perform in the fourth quarter and full year of 2024?

Fourth-quarter revenue was $3.33 billion versus $3.03 billion, and diluted EPS from continuing operations was $1.70 versus $(1.95). For the full year, revenue was $13.01 billion versus $12.16 billion, and diluted EPS was $8.84 versus $4.33. The prior-year periods included goodwill and asset impairments of $333.8 million in Q4 2023 and $349.0 million for the full year 2023.

What growth does Labcorp expect in 2025?

The company guided to 2025 revenue of $13.88 billion to $14.05 billion, which the release describes as a midpoint growth of 7.4%. Adjusted EPS guidance is $15.60 to $16.40, a midpoint growth of 9.8%, and free cash flow guidance is $1.10 billion to $1.25 billion, a midpoint growth of 7.2%.

What drove Labcorp's 2024 growth?

Management attributed 2024 results to both organic and inorganic growth. Organic revenue growth was 5.4% in Q4 and 3.9% for the full year, and acquisitions, net of divestitures, contributed 4.0% in Q4 and 2.8% for the full year. The company completed 10 transactions during 2024.

What is Labcorp's capital allocation and balance sheet position?

Year-end cash was $1.52 billion and total debt was $6.33 billion, which the company said reflects pre-funding of maturing debt. During 2024 the company invested $839.0 million in acquisitions, paid $243.1 million in dividends, and used $250.1 million for share repurchases. It also declared a quarterly dividend of $0.72 per share, payable March 12, 2025.

What is the status of the Fortrea spin-off referenced in the release?

The release refers to the spin-off of the Clinical Development and Commercialization Services business, now Fortrea Holdings Inc. The release's adjusted results exclude the impact of this business, and the forward-looking statements caution that the spin-off could fail to receive tax-free treatment for U.S. federal income tax purposes.

LH 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 6, 2025. Cited figures are marked; the original filing is the authoritative source.

Labcorp Holdings Inc. filed this Form 8-K on February 6, 2025 to furnish its Exhibit 99.1 press release announcing fourth-quarter and full-year 2024 results and providing 2025 guidance.

For full-year 2024, revenue from continuing operations was $13.01 billion^a versus $12.16 billion in 2023, with diluted EPS from continuing operations of $8.84 (versus $4.33) and adjusted EPS of $14.57 (versus $13.56). Fourth-quarter revenue was $3.33 billion versus $3.03 billion, and fourth-quarter diluted EPS was $1.70 versus $(1.95), which reflected goodwill and asset impairments of $333.8 million in the prior-year quarter. Free cash flow from continuing operations was $1.10 billion for the full year, versus $748.7 million in 2023.

Management highlighted that the company announced 10 transactions in 2024, including the acquisition of select assets from Lab Works and select outreach laboratory services from Ballad Health, and a subsequent collaboration with Inspira Health. Organic revenue growth was 5.4% in the fourth quarter and 3.9% for the year as reported in the release, and acquisitions contributed 4.0% in the quarter. Year-end cash was $1.52 billion^b and total debt was $6.33 billion, which the company attributed to pre-funding of maturing debt.

For 2025, Labcorp guided to revenue of $13.88 billion to $14.05 billion^c, adjusted EPS of $15.60 to $16.40, and free cash flow of $1.10 billion to $1.25 billion. The company also declared a quarterly cash dividend of $0.72 per share, payable March 12, 2025. The release notes that the Clinical Development and Commercialization Services business was spun off as Fortrea Holdings Inc., and that adjusted measures are non-GAAP.

02—Key points

Key Highlights

Q4 2024 revenue rose to $3.33 billion from $3.03 billion; full-year revenue rose to $13.01 billion from $12.16 billion.
Full-year 2024 diluted EPS from continuing operations was $8.84 versus $4.33; adjusted EPS was $14.57 versus $13.56.
Full-year 2024 free cash flow from continuing operations was $1.10 billion versus $748.7 million in 2023.
Full-year 2024 operating income was $1,086.7 million versus $725.6 million, and adjusted operating income was $1,797.0 million versus $1,714.9 million.
2025 guidance calls for revenue of $13.88 billion to $14.05 billion, adjusted EPS of $15.60 to $16.40, and free cash flow of $1.10 billion to $1.25 billion.
Diagnostics Laboratories and Biopharma Laboratory Services both had higher fourth-quarter adjusted operating income, at $359.5 million and $130.8 million respectively.
Year-end cash of $1.52 billion and total debt of $6.33 billion, with the company citing pre-funding of maturing debt; quarterly dividend of $0.72 per share declared.

03—Questions

Frequently Asked Questions

How did Labcorp perform in the fourth quarter and full year of 2024?
Fourth-quarter revenue was $3.33 billion versus $3.03 billion, and diluted EPS from continuing operations was $1.70 versus $(1.95). For the full year, revenue was $13.01 billion versus $12.16 billion, and diluted EPS was $8.84 versus $4.33. The prior-year periods included goodwill and asset impairments of $333.8 million in Q4 2023 and $349.0 million for the full year 2023.
What growth does Labcorp expect in 2025?
The company guided to 2025 revenue of $13.88 billion to $14.05 billion, which the release describes as a midpoint growth of 7.4%. Adjusted EPS guidance is $15.60 to $16.40, a midpoint growth of 9.8%, and free cash flow guidance is $1.10 billion to $1.25 billion, a midpoint growth of 7.2%.
What drove Labcorp's 2024 growth?
Management attributed 2024 results to both organic and inorganic growth. Organic revenue growth was 5.4% in Q4 and 3.9% for the full year, and acquisitions, net of divestitures, contributed 4.0% in Q4 and 2.8% for the full year. The company completed 10 transactions during 2024.
What is Labcorp's capital allocation and balance sheet position?
Year-end cash was $1.52 billion and total debt was $6.33 billion, which the company said reflects pre-funding of maturing debt. During 2024 the company invested $839.0 million in acquisitions, paid $243.1 million in dividends, and used $250.1 million for share repurchases. It also declared a quarterly dividend of $0.72 per share, payable March 12, 2025.
What is the status of the Fortrea spin-off referenced in the release?
The release refers to the spin-off of the Clinical Development and Commercialization Services business, now Fortrea Holdings Inc. The release's adjusted results exclude the impact of this business, and the forward-looking statements caution that the spin-off could fail to receive tax-free treatment for U.S. federal income tax purposes.

04—Continue

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