The Labcorp Holdings Inc. (NYSE:LH) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

It's been a sad week for Labcorp Holdings Inc. (NYSE:LH), who've watched their investment drop 11% to US$252 in the week since the company reported its quarterly result. The result was positive overall - although revenues of US$3.6b were in line with what the analysts predicted, Labcorp Holdings surprised by delivering a statutory profit of US$3.12 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Labcorp Holdings from 17 analysts is for revenues of US$14.6b in 2026. If met, it would imply a modest 6.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 31% to US$13.54. Before this earnings report, the analysts had been forecasting revenues of US$14.7b and earnings per share (EPS) of US$13.43 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Labcorp Holdings

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$299. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Labcorp Holdings, with the most bullish analyst valuing it at US$342 and the most bearish at US$260 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Labcorp Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.0% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 3.0% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.3% annually. So while Labcorp Holdings' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Labcorp Holdings going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Labcorp Holdings that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.