Laboratory Corporation of America Holdings (LH) Bundle
A Brief History of Laboratory Corporation of America Holdings (Labcorp)
Laboratory Corporation of America Holdings (Labcorp) has established itself as a leading global life sciences company, providing comprehensive clinical laboratory services. As of 2024, Labcorp has made significant strides in enhancing its operational capabilities and financial performance.
Financial Performance Overview
For the nine months ended September 30, 2024, Labcorp reported total revenues of $9,679.5 million, representing a 6.0% increase compared to $9,128.3 million in the same period of 2023. This growth was driven by organic revenue growth of 3.4%, acquisitions, net of divestitures, contributing 2.4%, and a favorable foreign currency translation impact of 0.2%.
| Period | Total Revenues (in millions) | Revenue Growth (%) |
|---|---|---|
| 9 Months Ended September 30, 2024 | $9,679.5 | 6.0% |
| 9 Months Ended September 30, 2023 | $9,128.3 | - |
Segment Performance
In terms of segment performance, the Diagnostics (Dx) segment generated revenues of $7,558.1 million for the nine months ended September 30, 2024, a growth of 6.9% from $7,068.3 million in the same period of 2023. The Base Business growth was particularly notable, showing an increase of 8.5%.
The Biopharma Laboratory Services (BLS) segment also saw growth, with revenues totaling $2,155.6 million, up 3.7% compared to $2,079.4 million in 2023.
| Segment | 2024 Revenues (in millions) | 2023 Revenues (in millions) | Growth (%) |
|---|---|---|---|
| Diagnostics (Dx) | $7,558.1 | $7,068.3 | 6.9% |
| Biopharma Laboratory Services (BLS) | $2,155.6 | $2,079.4 | 3.7% |
Cost and Profitability Metrics
Labcorp's cost of revenues for the nine months ended September 30, 2024, was $6,951.4 million, which reflects a 5.6% increase from $6,584.8 million in 2023. The cost of revenues as a percentage of total revenues improved slightly to 71.8% from 72.1% year-over-year.
The operating income for the nine months ended September 30, 2024, was $870.2 million, up 2.6% from $848.4 million in the same period of the prior year.
| Metric | 2024 Amount (in millions) | 2023 Amount (in millions) | Change (%) |
|---|---|---|---|
| Cost of Revenues | $6,951.4 | $6,584.8 | 5.6% |
| Operating Income | $870.2 | $848.4 | 2.6% |
Cash Flow and Dividends
For the nine months ended September 30, 2024, Labcorp generated $808.6 million in net cash provided by operating activities, compared to $622.7 million in 2023. The company paid out $183.0 million in dividends during this period.
| Cash Flow Metric | 2024 Amount (in millions) | 2023 Amount (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $808.6 | $622.7 |
| Dividends Paid | $183.0 | - |
Debt and Financial Stability
As of September 30, 2024, Labcorp's total long-term debt stood at $5,352.1 million, compared to $4,054.7 million at the end of 2023. The company has maintained a strong investment-grade credit rating, which supports its ongoing access to capital markets.
| Debt Metrics | 2024 Amount (in millions) | 2023 Amount (in millions) |
|---|---|---|
| Total Long-Term Debt | $5,352.1 | $4,054.7 |
Labcorp continues to focus on strategic acquisitions and operational efficiencies to drive growth and enhance shareholder value. The company's ongoing initiatives aim to solidify its position as a leader in the global healthcare landscape.
A Who Owns Laboratory Corporation of America Holdings (LH)
Major Shareholders
As of 2024, the ownership structure of Laboratory Corporation of America Holdings (LH) consists of a mix of institutional investors, mutual funds, and individual shareholders. The largest shareholders are primarily institutional investors, which hold a significant portion of the company's outstanding shares.
| Shareholder Type | Percentage of Ownership | Shares Owned (millions) |
|---|---|---|
| Vanguard Group Inc. | 10.5% | 8.8 |
| BlackRock Inc. | 9.8% | 8.1 |
| State Street Corporation | 7.2% | 6.0 |
| Wellington Management Company LLP | 5.0% | 4.2 |
| FMR LLC (Fidelity Investments) | 4.5% | 3.8 |
| Other Institutional Investors | 25.0% | 20.9 |
| Individual Shareholders | 20.0% | 16.7 |
Institutional Ownership
Institutional ownership of Laboratory Corporation of America Holdings is a key indicator of the company's stability and growth potential. The following table outlines the top institutional shareholders and their respective ownership percentages.
| Institution | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 8.8 | 10.5% |
| BlackRock | 8.1 | 9.8% |
| State Street | 6.0 | 7.2% |
| Wellington Management | 4.2 | 5.0% |
| Fidelity Investments | 3.8 | 4.5% |
| Others | 20.9 | 25.0% |
Recent Transactions
In 2024, Laboratory Corporation of America Holdings has seen various transactions in its stock, including share repurchase programs and dividends paid to shareholders. The following statistics summarize these activities:
| Activity | Amount | Date |
|---|---|---|
| Dividends Paid | $183.0 million | September 30, 2024 |
| Share Repurchase Authorization | $1,355.4 million | September 30, 2024 |
| New Debt Issuance | $2,000.0 million | September 2024 |
Market Capitalization and Stock Performance
As of September 30, 2024, Laboratory Corporation of America Holdings has a market capitalization of approximately $8.0 billion. The stock price has shown fluctuations in the market, reflecting investor sentiment and company performance.
| Metric | Value |
|---|---|
| Market Capitalization | $8.0 billion |
| Stock Price (as of September 30, 2024) | $224.91 |
| 52-Week High | $250.00 |
| 52-Week Low | $180.00 |
Conclusion
The ownership structure of Laboratory Corporation of America Holdings reflects a strong institutional backing, which contributes to its stability and growth prospects. The company's ongoing share repurchase initiatives and consistent dividend payments further reinforce investor confidence.
Laboratory Corporation of America Holdings (LH) Mission Statement
Company Overview
Laboratory Corporation of America Holdings (Labcorp), founded in 1971, is a leading global life sciences company that provides comprehensive clinical laboratory services and drug development services. The company is committed to improving health and enhancing the quality of life through innovation and technology in laboratory testing and diagnostic services.
Mission Statement
As of 2024, Labcorp's mission statement emphasizes their commitment to advancing health and improving lives through innovative laboratory services. Their focus is on providing high-quality, accurate, and timely laboratory testing that supports healthcare providers and patients in making informed health decisions.
Key Components of the Mission Statement
- Delivering high-quality laboratory services that support patient care.
- Utilizing advanced technology and innovation to enhance testing capabilities.
- Commitment to sustainability and ethical practices in laboratory operations.
- Fostering partnerships with healthcare providers to improve patient outcomes.
Financial Performance Indicators
Labcorp's financial performance reflects its commitment to its mission. Key financial figures for the nine months ended September 30, 2024, include:
| Financial Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Total Revenues | $9,679.5 | $9,128.3 | 6.0% |
| Cost of Revenues | $6,951.4 | $6,584.8 | 5.6% |
| Gross Profit | $2,728.1 | $2,543.5 | 7.3% |
| Selling, General and Administrative Expenses | $1,634.8 | $1,488.5 | 9.8% |
| Operating Income | $870.2 | $848.4 | 2.6% |
| Net Earnings | $602.6 | $585.1 | 3.9% |
Strategic Initiatives
Labcorp's strategic initiatives are aligned with its mission and include:
- Investment in technology and automation to enhance testing efficiency.
- Expansion of service offerings in genomic and precision medicine.
- Focus on sustainability initiatives to reduce environmental impact.
- Collaboration with healthcare providers to improve access to diagnostic services.
Market Position
Labcorp holds a significant market position in the clinical laboratory and drug development sectors. As of September 30, 2024, the company reported:
| Market Segment | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Diagnostics (Dx) | $7,558.1 | 78.0% |
| Biopharma Laboratory Services (BLS) | $2,155.6 | 22.3% |
| Intercompany Eliminations and Other | ($34.2) | - |
Commitment to Innovation
Labcorp continues to invest in research and development to support its mission. The company has allocated a significant portion of its budget towards innovation in diagnostic technologies and services, ensuring they remain at the forefront of the industry.
Conclusion
Labcorp's mission statement and strategic initiatives reflect its dedication to improving health outcomes through quality laboratory services. The company's financial performance and market position highlight its commitment to providing innovative solutions in the healthcare sector.
How Laboratory Corporation of America Holdings (LH) Works
Business Segments
Laboratory Corporation of America Holdings (Labcorp) operates primarily through two segments: Diagnostics (Dx) and Biopharma Laboratory Services (BLS).
Financial Performance Overview
For the three months ended September 30, 2024, Labcorp reported total revenues of $3,282.0 million, representing a 7.4% increase from $3,056.8 million in the same period of 2023.
| Segment | Q3 2024 Revenues (in millions) | Q3 2023 Revenues (in millions) | Change (%) |
|---|---|---|---|
| Diagnostics (Dx) | $2,553.5 | $2,344.7 | 8.9% |
| Biopharma Laboratory Services (BLS) | $737.7 | $719.1 | 2.6% |
| Total Revenues | $3,282.0 | $3,056.8 | 7.4% |
Revenue Composition
For the nine months ended September 30, 2024, Labcorp's total revenues were $9,679.5 million, an increase of 6.0% from $9,128.3 million in the same period of 2023.
| Segment | 9M 2024 Revenues (in millions) | 9M 2023 Revenues (in millions) | Change (%) |
|---|---|---|---|
| Diagnostics (Dx) | $7,558.1 | $7,068.3 | 6.9% |
| Biopharma Laboratory Services (BLS) | $2,155.6 | $2,079.4 | 3.7% |
| Total Revenues | $9,679.5 | $9,128.3 | 6.0% |
Cost Structure
For the three months ended September 30, 2024, the cost of revenues was $2,377.6 million, representing a 7.8% increase from $2,205.6 million in Q3 2023. The cost of revenues as a percentage of total revenues was 72.4%, up from 72.2% in the prior year.
| Cost Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Revenues | $2,377.6 million | $2,205.6 million | 7.8% |
| Cost of Revenues as % of Revenues | 72.4% | 72.2% | N/A |
Operating Income
The total operating income for the three months ended September 30, 2024, was $254.1 million, a slight increase from $252.3 million in the corresponding period of 2023.
Cash Flow Analysis
For the nine months ended September 30, 2024, net cash provided by operating activities was $808.6 million, compared to $622.7 million in 2023. The cash used for investing activities was $1,157.2 million, up from $816.2 million in the same period of the prior year.
| Cash Flow Metrics | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $808.6 | $622.7 |
| Net Cash Used for Investing Activities | ($1,157.2) | ($816.2) |
| Net Cash Provided by Financing Activities | $1,326.6 | ($1,112.5) |
Debt and Liquidity
As of September 30, 2024, Labcorp’s total liabilities were $10,427.1 million, with long-term debt (less current portion) amounting to $5,352.1 million. Total shareholders' equity stood at $8,170.2 million.
| Balance Sheet Metrics | As of September 30, 2024 (in millions) |
|---|---|
| Total Liabilities | $10,427.1 |
| Long-term Debt (less current portion) | $5,352.1 |
| Total Shareholders' Equity | $8,170.2 |
Market Presence
Labcorp operates primarily in North America, with revenues from this region accounting for 83.4% of total revenues in Q3 2024.
| Geographical Revenue Breakdown | Q3 2024 (% of Total Revenues) |
|---|---|
| North America | 83.4% |
| Europe | 9.0% |
| Other | 4.0% |
How Laboratory Corporation of America Holdings (LH) Makes Money
Revenue Segments
Laboratory Corporation of America Holdings (Labcorp) generates revenue primarily through two segments: Diagnostics (Dx) and Biopharma Laboratory Services (BLS).
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| Diagnostics (Dx) | $2,553.5 million | $2,344.7 million | 8.9% |
| Biopharma Laboratory Services (BLS) | $737.7 million | $719.1 million | 2.6% |
| Total Revenue | $3,282.0 million | $3,056.8 million | 7.4% |
Revenue Breakdown by Source
For the nine months ended September 30, 2024, Labcorp reported total revenues of $9,679.5 million, reflecting a 6.0% increase from $9,128.3 million in the prior year. This growth can be attributed to the following:
- Organic revenue growth of 3.4%
- Acquisitions, net of divestitures, contributing 2.4%
- Favorable foreign currency translation of 0.2%
Diagnostics Revenue Composition
Within the Diagnostics segment, revenue is derived from various payer/customer groups:
| Payer/Customer Group | Revenue Contribution (%) |
|---|---|
| Clients | 24% |
| Patients | 10% |
| Medicare and Medicaid | 8% |
| Third Party | 36% |
| Total Diagnostics Revenue | 78% |
Cost Structure
For the three months ended September 30, 2024, the cost of revenues was $2,377.6 million, representing 72.4% of total revenues. This reflects an increase from 72.2% in Q3 2023.
| Cost Type | Amount (Q3 2024) | Amount (Q3 2023) | Change (%) |
|---|---|---|---|
| Cost of Revenues | $2,377.6 million | $2,205.6 million | 7.8% |
| Gross Profit | $904.4 million | $851.2 million | 6.3% |
Operating Income
Operating income for the three months ended September 30, 2024, was reported at $254.1 million, slightly up from $252.3 million in the same period of the previous year.
| Income Type | Amount (Q3 2024) | Amount (Q3 2023) | Change (%) |
|---|---|---|---|
| Total Operating Income | $254.1 million | $252.3 million | 0.7% |
| Diagnostics Operating Income | $387.4 million | $386.3 million | 0.3% |
| Biopharma Operating Income | $120.9 million | $109.0 million | 10.8% |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Labcorp reported net cash provided by operating activities of $808.6 million, compared to $622.7 million in the previous year.
| Cash Flow Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Net Cash Provided by Operating Activities | $808.6 million | $622.7 million |
| Net Cash Used for Investing Activities | ($1,157.2 million) | ($816.2 million) |
| Net Cash Provided by Financing Activities | $1,326.6 million | ($1,112.5 million) |
Market Position and Growth Strategy
Labcorp's growth strategy includes organic revenue growth and acquisitions. The company has engaged in several strategic acquisitions, spending approximately $751.2 million on various clinical and outreach businesses in 2024.
Shareholder Returns
Labcorp has maintained a focus on returning value to shareholders, with dividends declared totaling $60.9 million in 2024.
| Metric | Amount |
|---|---|
| Dividends Declared (2024) | $60.9 million |
| Basic Earnings Per Share (Q3 2024) | $2.02 |
| Diluted Earnings Per Share (Q3 2024) | $2.00 |
Laboratory Corporation of America Holdings (LH) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Laboratory Corporation of America Holdings (LH) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of Laboratory Corporation of America Holdings (LH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Laboratory Corporation of America Holdings (LH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.