Labcorp's 2024 Revenues Surge 7%

By Tamara Parker • Tuesday, February 25 15:21 • Permanent Link

Labcorp Holdings Inc. recently released its 10-K report, providing a comprehensive overview of its financial performance and operations for the year ended December 31, 2024. The company operates through two segments, Diagnostics Laboratories and Biopharma Laboratory Services, offering a wide range of tests and specialty testing services, as well as health and wellness services to various clients including pharmaceutical, biotechnology, and medical device companies, among others.

In the year ended December 31, 2024, Labcorp reported total revenues of $13,008.9 million, representing a 7.0% increase from the previous year. The Diagnostics (Dx) segment contributed $10,144.3 million in revenues, reflecting a 7.7% increase, primarily driven by organic revenue growth of 4.1% and acquisitions. The Biopharma Laboratory Services (BLS) segment reported revenues of $2,922.6 million, marking a 5.3% increase, primarily attributed to organic growth of 4.3% and favorable foreign currency translation.

Cost of revenues for the year ended December 31, 2024, increased by 6.7% to $9,384.5 million, while selling, general and administrative expenses rose by 10.3% to $2,230.0 million. The company recorded goodwill and other asset impairments of $5.3 million, significantly lower than the $349.0 million recorded in the previous year. Labcorp also reported an increase in interest expense by 4.4% to $208.3 million for the year ended December 31, 2024.

The company's operating income for the year ended December 31, 2024, stood at $1,086.7 million, marking a significant 49.8% increase from the previous year. The Dx segment's operating income increased by 0.9% to $1,606.3 million, while the BLS segment's operating income rose by 15.8% to $458.9 million.

Labcorp's liquidity and capital resources remained robust, with net cash provided by continuing operating activities amounting to $1,585.8 million for the year ended December 31, 2024, compared to $1,202.3 million in 2023. The company's cash and cash equivalents at December 31, 2024, totaled $1,518.7 million, reflecting a substantial increase from the previous year.

As a result of these announcements, the company's shares have moved 0.6% on the market, and are now trading at a price of $252.96. For the full picture, make sure to review Labcorp's 10-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.