Due to the weakened economy, LabCorp has lowered its revenue and profit projections for 2009.
The company now expects revenue growth of 2 percent to 4 percent. This is down from an earlier projection of 3.5 to 5.5 percent. Earnings are now expected to be in the range of $4.75 to $4.95 per share, in contrast to the company’s original estimated earnings of $5 to $5.25 per share for 2009.
“Given the ongoing deterioration in the economy, it seems prudent to forecast lower growth for 2009,” David P. King, LabCorp chief executive officer, said in a press release issued Tuesday. “Our revised guidance reflects the expected impact on earnings from economic factors that worsened during the fourth quarter.”
In addition, Burlington’s largest employer has also reaffirmed projections for 2008. This includes an annual revenue growth of 11 percent and earnings per share guidance of between $4.57 and $4.61. This excludes restructuring and share repurchase activity after September 30, 2008.
LabCorp expects Earnings Before Interest, Taxes, Depreciation, and Amortization margins of approximately 25 percent, which will operate a cash flow of around $750 million to $770 million, capital expenses of approximately $140 million to $160 million and net interest expenses of around $70 million.
“Nevertheless, looking forward, we continue to believe our industry and our company are more important than ever to the U.S. healthcare system, which provides us confidence that more normal economic times will lead to enhanced growth and profitability in 2010 and beyond,” King said.
The company will provide more detailed 2009 guidance in its fourth quarter earnings release, which is scheduled for Feb. 12.