Laboratory Corporation Intrinsic Stock Value – LABORATORY CORPORATION Reports Record Q2 Earnings for FY2023 on June 30, 2023
August 25, 2023
🌥️Earnings Overview
On June 30, 2023, LABORATORY CORPORATION ($NYSE:LH) reported their FY2023 Q2 earnings results. Total revenue for the second quarter was USD 3033.7 million, a decrease of 17.9% from the same period in the prior year. Net income for the quarter was USD 188.9 million, a 47.3% decrease year over year.
Price History
On Thursday, the company’s stock opened at $215.1 and closed at $216.0, a 1.3% decrease from the previous closing price of 218.8. The company attributed its success to a strong focus on the development of innovative products and services that are in demand within the healthcare industry.
In addition, LABORATORY CORPORATION attributed its impressive financial results to its strong balance sheet and rigorous cost control measures. This allowed the company to invest in research and development activities, such as the creation of new products and services that can be used in the field of healthcare. Overall, these strong quarterly earnings demonstrate the effectiveness of LABORATORY CORPORATION’s strategy and the expertise of its management team in capitalizing on opportunities in the healthcare industry. Investors remain optimistic about the company’s prospects for the rest of the fiscal year 2023 and beyond. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Laboratory Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 13.35k | 830.7 | 7.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Laboratory Corporation. More…
| Operations | Investing | Financing |
| 1.5k | -1.19k | 659.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Laboratory Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.71k | 8.91k | 98.9 |
Key Ratios Snapshot
Some of the financial key ratios for Laboratory Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.2% | 5.2% | 8.5% |
| FCF Margin | ROE | ROA |
| 8.2% | 7.5% | 4.0% |
Analysis – Laboratory Corporation Intrinsic Stock Value
At GoodWhale, we conducted a comprehensive analysis of LABORATORY CORPORATION‘s wellbeing and we are pleased to report that the intrinsic value of LABORATORY CORPORATION share is around $216.0 based on our proprietary Valuation Line. This figure is in line with the stock’s current trading price of $216.0, indicating that the stock is currently trading at a fair price. We believe that investors have good reason to be confident in the future of LABORATORY CORPORATION and its continued success. More…
Peers
In the medical laboratory testing industry, Laboratory Corp of America Holdings (LabCorp) competes with several other large companies, including Charles River Laboratories International Inc, Beijing Strong Biotechnologies Inc, and Eurofins Scientific SE. While each company has its own strengths and weaknesses, LabCorp has been able to maintain a leading position in the industry through its strong focus on customer service and innovative product offerings.
– Charles River Laboratories International Inc ($NYSE:CRL)
Founded in 1948, Charles River Laboratories International, Inc. is a global provider of drug discovery, development and manufacturing services. The company operates in three segments: Research Models and Services (RMS), Laboratory Services (LS) and Manufacturing Support (MS). It serves pharmaceutical and biotechnology companies, government agencies and academic institutions around the world.
The company has a market cap of $10.15 billion and a return on equity of 13.86%. Charles River Laboratories International, Inc. is a global leader in providing drug discovery, development and manufacturing services. The company serves pharmaceutical and biotechnology companies, government agencies and academic institutions around the world.
– Beijing Strong Biotechnologies Inc ($SZSE:300406)
As of 2022, Beijing Strong Biotechnologies Inc has a market cap of 10.38B and a Return on Equity of 9.89%. The company is engaged in the research, development, production and marketing of biopharmaceutical products. Its products include vaccines, antibodies, blood products and other therapeutics.
– Eurofins Scientific SE ($LTS:0MV5)
Eurofins Scientific SE is a global leader in the food, environmental, pharmaceutical and cosmetics industries. With a market cap of 11.83B as of 2022 and a Return on Equity of 12.32%, the company is well-positioned to continue its growth and expansion in these industries. As a company that provides testing, analysis, and scientific support services to its clients, Eurofins Scientific is dedicated to ensuring the safety and quality of the products and services it provides. In addition to its commitment to quality, the company is also committed to the environment and to the communities in which it operates.
Summary
Investors in Laboratory Corporation of America should take note of the company’s recent disappointment during their Q2 FY2023 earnings. Revenue for the quarter fell 17.9% year-over-year to USD 3033.7 million, while net income dropped 47.3% to USD 188.9 million. This is a significant decrease in both metrics, likely a result of the pandemic, and should be considered before making any decisions regarding investing in the company. It remains to be seen if management will be able to recover the losses in future quarters.
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