Mid Cap Watch List (Track at Marketocracy) and Large Cap Watch List (Track at Marketocracy) member Laboratory Corporation of America(R) Holdings (LH) announced results for the quarter and six months ended June 30, 2007. Excluding restructuring and other special charges recorded in 2007, net earnings increased 14.1% to $132.8 million. Earnings per diluted share (EPS) increased 20.7% to $1.05, compared to $0.87 per diluted share in the second quarter of 2006. Excluding restructuring and other special charges recorded in 2007, EPS increased 25.3% to $1.09, in line with consensus estimates.
Revenues for the quarter were $1,043.1 million, an increase of 15.4% compared to the same period in 2006 and ahead of the $1.03 billion consensus. Looking ahead, the Company expects revenue growth of 13% to 14%, EBITDA margins of approximately 26.4% to 26.9%, and diluted earnings per share of between $4.11 and $4.27. With the consensus at 13.5% revenue growth and $4.21 in earnings per share, the apparent margin pressure (relative to expectations) is forecast to continue.
