-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
LH reported Q1 adjusted EPS of $4.25, up 10.6% Y/Y and $0.13 above consensus, marking its 11th consecutive quarterly beat. Revenue increased 5.8% Y/Y to $3.54B with adjusted operating margin expanding 30 bps to 14.4%, supported by growth across both segments. Diagnostics Laboratories delivered consistent performance with 5.0% revenue growth to $2.76B, while Biopharma Laboratory Services grew 8.2% to $780.6M, supported by strong Central Labs performance. Management raised full-year guidance, increasing adjusted EPS midpoint by $0.13 to $18.03 and revenue growth expectations by 20 bps, reflecting confidence in the business trajectory. Cash flow generation showed notable improvement with FCF of $70.5M vs. negative $107.5M in the prior-year quarter. LH maintained balanced capital allocation, investing $202.2M in M&A while returning $159.2M to shareholders through buybacks and dividends. The $8.64B backlog with a 1.04 trailing-12-months book-to-bill ratio supports revenue visibility, in our view.