April 29, 2020 / 11:20 AM / a month ago

BRIEF-Labcorp Q1 Loss Per Share $3.27

April 29 (Reuters) - Laboratory Corporation of America Holdings:

* Q1 LOSS PER SHARE $3.27

* Q1 REVENUE $2.82 BILLION VERSUS REFINITIV IBES ESTIMATE OF $2.74 BILLION

* Q1 EARNINGS PER SHARE ESTIMATE $1.95 — REFINITIV IBES DATA

* Q1 ADJUSTED EARNINGS PER SHARE $2.37

* WITHDRAWS 2020 GUIDANCE AND TEMPORARILY SUSPENDS ITS SHARE REPURCHASE PROGRAM DUE TO UNPREDICTABILITY OF ONGOING COVID-19 PANDEMIC

* IN LABCORP DIAGNOSTICS, DEMAND FOR TESTING DECLINED 50% TO 55% VERSUS COMPANY’S NORMAL DAILY LEVELS AT END OF Q1

* RECORDED RESTRUCTURING CHARGES, SPECIAL ITEMS, IMPAIRMENTS, AND AMORTIZATION, WHICH TOGETHER TOTALED $558.5 MILLION IN QUARTER

* QTRLY LABCORP DIAGNOSTICS REVENUE, ADJUSTING OUT INCREASE IN ACCOUNTS RECEIVABLE RESERVES WAS $1.70 BILLION, A DECREASE OF 1.2%

* REDUCTION IN QTRLY DEMAND IN LABCORP DIAGNOSTICS IMPACTED TESTING VOLUMES BROADLY, BUT WAS HEAVILY WEIGHTED TOWARDS ROUTINE TESTS

* QTRLY COVANCE DRUG DEVELOPMENT REVENUE, WAS $1.14 BILLION, AN INCREASE OF 6.4%

* QTRLY LOWER ORGANIC REVENUE INCLUDES ESTIMATED NEGATIVE IMPACT FROM COVID-19 OF 4.9% & LOWER MEDICARE, MEDICAID PRICING AS A RESULT OF PAMA OF 0.7%

* QTRLY VOLUME REDUCTION IN BASE BUSINESS OF LABCORP DIAGNOSTICS APPEARS TO HAVE STABILIZED

* QUARTER-END COVANCE DRUG DEVELOPMENT BACKLOG WAS $11.30 BILLION

* AT END OF QUARTER, COMPANY’S CASH BALANCE AND TOTAL DEBT WERE $323.6 MILLION AND $6.2 BILLION, RESPECTIVELY

* EXPECTS TO OFFSET SOME VOLUME SHORTFALL IN LABCORP DIAGNOSTICS BY INCREASING CAPACITY FOR SEROLOGICAL ANTIBODY TESTS TO OVER 200,000 TESTS/DAY BY MID-MAY

* RECORDED $21.9 MILLION OF OTHER COVID-19 RELATED COSTS IN QUARTER

* IN COVANCE DRUG DEVELOPMENT, PERFORMANCE HAS BEEN CHALLENGED BY COVID-19

* REDUCING CASH OUTFLOWS THROUGH DELAYING CERTAIN CAPITAL EXPENDITURES

* APPLYING A HEIGHTENED THRESHOLD TO ACQUISITION ACTIVITY

* AT END OF QUARTER, CO’S CASH BALANCE AND TOTAL DEBT WERE $323.6 MILLION AND $6.2 BILLION, RESPECTIVELY

* TAKING ACTIONS REGARDING WORKFORCE INCL. IMPLEMENTING FURLOUGHS; DELAYING HIRING; REDUCING TEMPORARY & CONTRACT WORKERS, INTERN POSITIONS, OVERTIME

* SUSPENDING DISCRETIONARY MERIT ADJUSTMENT FOR ALL EMPLOYEES

* SUSPENDING 401(K) CONTRIBUTIONS FOR ALL U.S. EMPLOYEES

* EXPECTS TO DELIVER SOLID ADJUSTED EPS AND FREE CASH FLOW IN 2020

* TAKING ACTIONS TO UTILIZE AVAILABLE STIMULUS / CARES ACT BENEFITS Source text for Eikon: Further company coverage:

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