Laboratory Corporation of America ® Holdings (LabCorp ®) (NYSE: LH) today reaffirmed its prior revenue growth guidance of approximately 3% and updated its non-GAAP full year 2013 Adjusted Earnings Per Share (EPS) Excluding Amortization guidance to between $6.90 and $7.05. These preliminary figures are based on current expectations and actual results may differ. The Company expects to report final 2013 results in its fourth quarter earnings release, scheduled for February 7 th, 2014.
The Company also provided its preliminary 2014 full year guidance. For 2014, the Company expects revenue growth of approximately 2% and Non-GAAP Adjusted EPS Excluding Amortization, not including the impact of any share repurchase activity in 2014, of approximately $6.50. The Company expects to provide a final 2014 guidance range in its fourth quarter earnings release.
The Company believes the challenging operating environment will continue to negatively impact financial performance through 2014. The Company’s preliminary 2014 earnings guidance, which does not include the effect of any share repurchase activity in 2014, is also based on the anticipated negative impact from, among other factors:
- A continued muted utilization environment;
- Continued increases in Americans with high deductible and high co-insurance plans;
- Ongoing government payment and reimbursement issues; and
- Uncertainty related to the implementation of the Affordable Care Act.
“We continue to operate in a very difficult environment,” said David P. King, Chairman and CEO. “In response to these challenges, we remain firmly committed to our five-pillar strategy and will execute the following actions:
- Revitalize and strengthen our core business by continuing our initiatives in customer service, IT and laboratory automation;
- Execute our initiatives under our fifth strategic pillar, including implementation of BeaconLBS and our other revenue growth and diversification initiatives;
- Focus on strategic transactions; and
- Perform a comprehensive review of our cost structure to make sure we remain the highest-quality and most efficient provider of laboratory services.”