LabCorp Withdraws Guidance as Virus Hits First-Quarter Results

LabCorp withdrew its 2020 guidance and suspended its share buyback after the coronavirus hit first-quarter results.
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LabCorp  (LH) - Get Report on Wednesday reported a first-quarter loss, and the life-sciences giant withdrew its 2020 guidance and suspended its share buyback due to the unpredictability sparked by the coronavirus pandemic.

The Burlington, N.C., company's shares at last check were down 2.9% to $170.84.

LabCorp reported a net loss of $317.2 million, or $3.27 a share, compared with net income of $185.6 million, or $1.86, in the year-earlier period. 

The latest adjusted earnings came to $2.37 a share, compared with the FactSet estimate of $2.15.

The latest adjusted results include a negative impact of roughly 55 cents a share due to the coronavirus outbreak.

Revenue totaled $2.82 billion, up 1.2% over the year-earlier total of $2.79 billion. Wall Street had called for revenue of $2.8 billion. 

The company said acquisitions boosted revenue 3.4%, partly offset by 0.5% from the disposition of a business and 1.8% lower organic revenue.

LabCorp reported goodwill costs of $437.4 million that were caused by the economic conditions due to the coronavirus pandemic, and another $21.9 million in costs directly related to the coronavirus for the first quarter.

The company said that it expected to deliver solid adjusted earnings per share and free cash flow in 2020. As of March 31, LabCorp had $324 million in cash and $924 million available under its revolving credit facility. 

Last week, the company said its at-home coronavirus test had won emergency clearance from the Food and Drug Administration. LabCorp said the tests first would be limited to healthcare workers and first responders who have developed coronavirus symptoms.