Laboratory Corporation of America Holdings (LH, Financial) offers testing services used by medical professionals in core testing, patient diagnosis and the monitoring and treatment of disease. LabCorp shares rose during the fourth quarter, rebounding after a poor month in September. The company’s most recent financial results showed continued strength in the legacy Diagnostics segment with +5% organic sales growth versus the prior year and a healthy increase in profitability. Results in the still relatively new Covance Drug Development business improved, consistent with management’s expectations earlier in the year. Following a 3-year period of relatively stagnant growth, LabCorp appears poised for a return to healthy, double-digit per share earnings growth over the next several years as the company leverages the commercial strength of its combined operations.
From Weitz Funds' Balanced Fund fourth quarter 2015 commentary.
