Labcorp Earnings: Solid Underlying Demand and New M&A Set Path for Strong 2024

Labcorp delivered a solid first-quarter performance that tracked closely with our full-year expectations for the top and bottom lines. We’ve made minimal adjustments to our assumptions and are leaving our fair value estimate unchanged. The strength in medical utilization seen in recent quarters seems to have continued through the first quarter, leading management to raise its outlook for the diagnostic lab business (along with the incorporation of recent acquisition activity). Our projections for 2024 are bounded by management’s revised outlook, and we remain confident of the firm’s narrow economic moat supported by a cost advantage.