Thursday, Laboratory Corp (NYSE: LH) reported fourth-quarter 2024 adjusted earnings per share of $3.45, up from $3.30 a year ago, beating the consensus of $3.39.

Sales increased 9.8% year-over-year to $3.33 billion, almost in line with the consensus of $3.31 billion.

The increase was due to organic revenue growth of 5.4%, acquisitions, net of divestitures of 4%, and foreign currency translation of 0.3%.

“In 2024, Labcorp delivered exceptional results driven by both organic and inorganic growth,” said Adam Schechter, chairman and CEO of Labcorp…Additionally, we strengthened our presence in key high growth areas including oncology, women’s health, neurology and autoimmune disease. In 2025, we are positioned to deliver strong growth and margin expansion across both Diagnostics Laboratories and Biopharma Laboratory Services…”

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Adjusted operating income for the quarter was $423.2 million, or 12.7% of revenue, compared to $394.9 million, or 13%, in the fourth quarter.

William Blair analyst Andrew F. Brackmann writes, “We continue to believe the underlying business at Labcorp is on solid footing, as the diagnostics segment benefits from favorable macro tailwinds and the BLS segment sees solid growth in central labs (albeit decelerating off tough comps) and early development returns to growth.”

This positions the stock well for 2025, with stable guidance and potential for gains if the company’s momentum continues.

William Blair reiterates the Outperform rating.

Guidance: LabCorp expects 2025 adjusted EPS of 15.60-$16.40 versus the consensus of $16.0. It expects 2025 sales of $13.9 billion-$14.1 billion versus consensus Of $13.8 billion.

The guidance includes 2025 Diagnostics Laboratories sales growth of 6.5%- 7.7% and Biopharma Laboratory Services sales growth of 3.0%- 5.0%.

Price Action: Laboratory stock is down 0.92% at $247.68 at the last check on Thursday.

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