FY18 consensus $11.35. Cuts FY18 revenue growth view to 9.9%-10.3% from 10.5%-11%, consensus $11.39B. The Company’s revised outlook was primarily driven by lower-than-expected volume growth in LabCorp Diagnostics, which the Company believes will continue for the remainder of the year. The softness in demand is primarily due to slower growth in referred direct-to-consumer genetic testing, lower referral volume from hospitals and health systems, volume declines from certain managed care plans that will no longer be exclusive to LabCorp in 2019, and adverse weather. As stated on the third quarter earnings call, the Company has implemented cost reduction initiatives, but these initiatives will be insufficient to maintain the Company’s prior outlook in light of the unanticipated volume shortfall. “We are disappointed with this shortfall in Diagnostics but continue to be confident in our outlook in Covance Drug Development,” said David P. King, chairman and chief executive officer. “Looking to next year, we continue to expect modest EPS growth over our updated 2018 earnings. As a global leader in life sciences, our differentiated offering positions us to create significant long-term shareholder value.”
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.