Labcorp Plunges as Drop in Covid Testing Hits Quarterly Sales
- Lab company sees up to 70% decline in Covid testing this year
- Projecting diagnostics demand has been challenge for companies
A pedestrian walks by a LabCorp office in Greenbrae, California, on Feb. 11, 2021.
Photographer: Justin Sullivan/Getty Images
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Labcorp shares fell the most intraday since late 2020 after the company reported first-quarter sales results that fell short of expectations, citing a drop in virus testing.
Covid-19 diagnostic and antibody testing declined by almost 10% in the quarter, Labcorp said, despite the recent omicron wave driving cases higher. The lab giant now expects that Covid testing will decline by as much as 70% this year, while the company’s base business will grow as much as 10%, Chief Financial Officer Glenn Eisenberg said Thursday on a call with investors.