BURLINGTON, N.C. (AP) — Clinical lab services company Laboratory Corp. of America Holdings reported Friday that its fourth quarter earnings edged up 3 percent as revenue and expenses both rose.
The adjusted earnings topped Wall Street estimates, but the revenue figure was slightly below Wall Street expectations and its forecast for 2012 revenue was short of estimates.
Its shares dropped $3.98, or 4.3 percent, to $88.13 in morning trading.
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The Burlington, N.C., company known as LabCorp said Friday its net income rose to $135.4 million, or $1.34 per share, in the three months that ended Dec. 31, up from $131.8 million, or $1.26 per share, a year ago.
Earnings excluding restructuring charges and other special items were $1.56 per share in the latest quarter. That beat the $1.51 per share that analysts surveyed by FacSet had expected, on average. Analysts typically exclude one-time items from their estimates.
Revenue rose to $1.37 billion from almost $1.3 billion a year ago. Analysts expected $1.38 billion in revenue.
The company said revenue climbed mostly due to an increase in revenue per requisition. Testing volume rose 1.2 percent. But the company's cost of sales rose 6.6 percent to $816.5 million.
LabCorp also said it absorbed restructuring and other special charges totaling $10.6 million in the quarter. That included $6.3 million in severance and other personnel costs as well as expenses tied to the integration of Orchid Cellmark and Genzyme Genetics.
For the full year, LabCorp reported net income of $519.7 million, or $5.11 per share, down from $558.2 million, or $5.29 per share, a year earlier. Revenue rose 10.8 percent to $5.54 billion from $5.0 billion a year ago.
For 2012, the company expects adjusted earnings of $6.75 to $7.05 per share on revenue growth ranging from 2 percent to 3.5 percent. That would amount to revenue ranging between $5.65 billion and $5.74 billion.
Analysts expect, on average, earnings of $6.93 per share on $5.77 billion in revenue.
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