LabCorp Raises 2016 Adj. EPS Guidance; To Acquire Sequenom For $2.40/shr

(RTTNews) - Laboratory Corporation of America Holdings (LH) announced, for fiscal 2016, the company expects adjusted EPS of $8.60 to $8.95, versus prior guidance of $8.55 to $8.95. Analysts polled by Thomson Reuters expect the company to report profit per share of $8.79. Analysts' estimates typically exclude special items.

The company expects 2016 net revenue growth of 9.5% to 10.5% over 2015 net revenue of $8.51 billion, which includes the impact from approximately 50 basis points of negative currency. This is an increase from prior guidance of 8.5% to 10.5%, which included approximately 40 basis points of negative currency.

Second-quarter net earnings were $198.2 million, or $1.91 per share, compared to $169.8 million, or $1.66 per share, last year. Adjusted EPS were $2.31 in the quarter, an increase of 10.5% compared to $2.09 in the second quarter of 2015.

Second-quarter net revenue was $2.38 billion, an increase of 7.4% over last year's $2.22 billion. The company said the increase in net revenue was primarily due to solid organic growth in both segments and tuck-in acquisitions, partially offset by the negative impact of foreign currency translation. Organic revenue growth in the quarter, excluding currency, was 6.4%.

LabCorp and Sequenom, Inc. (SQNM), a pioneer in non-invasive prenatal testing (NIPT) for reproductive health, announced they have entered into a definitive agreement and plan of merger under which LabCorp would acquire all of the outstanding shares of Sequenom in a cash tender offer for $2.40 per share, or an equity value of $302 million, which represents a total enterprise value of approximately $371 million, including net indebtedness.

"Sequenom's market-leading NIPT and genetic testing capabilities will advance LabCorp's strategy to deliver world-class diagnostic solutions," said David King, CEO of LabCorp.