Labcorp raises its profit forecast for the year

Adds results details, background

October 28 (Reuters)Corp of America Holdings Laboratory LH.N raised its annual profit forecast on Thursday, as a rebound in its unit performing clinical trials for drugmakers helped soften the blow from declining demand for COVID-19 tests.

Labcorp and other test providers, which have made millions from sales related to coronavirus testing, have seen test volumes decline as more Americans get vaccinated.

Last week, its rival Quest Diagnostics Inc DGX.N warned that molecular testing volumes are likely to decline by the end of the year, as infections decline.

Labcorp saw a decline in PCR and COVID-19 antibody testing during the quarter, while revenue from its unit, which provides clinical trial services to drugmakers, increased 17.5%.

The company now expects adjusted earnings for 2021 of between $ 26 and $ 28 per share, down from its previous outlook of $ 21.50 to $ 25 per share.

Labcorp’s net income fell to $ 587.3 million, or $ 6.05 per share, in the third quarter ended Sept. 30, from $ 703.4 million, or $ 7.17 per share, a year over early.

(Reporting by Oishee Majumdar and Mrinalika Roy in Bengaluru; Editing by Shailesh Kuber)

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