Labcorp Holdings Inc. stock research
FY2024 Q4
Labcorp Holdings (LH) Gross Margin — Quarter Ended Dec 31, 2024
Revenue was stable compared to the prior quarter, while gross profit and gross margin both declined slightly. Versus the same quarter last year, revenue and gross profit were higher, but gross margin was lower.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue was stable compared to the prior quarter, while gross profit and gross margin both declined slightly. Versus the same quarter last year, revenue and gross profit were higher, but gross margin was lower.
- Cost of revenue increased relative to revenue, compressing gross margin. The decline in gross margin from the prior quarter was the most notable change among the metrics.
- Compared to the prior quarter, gross margin weakened, driven by a slightly higher cost of revenue relative to stable revenue. Versus the same quarter last year, gross margin was lower despite higher revenue and gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.9%
Gross profit
$896.3M
Revenue
$3.3B
Cost of revenue
$2.4B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $3.2B | $897.3M | $2.3B | 28.2% |
| Jun 30, 2024 | $3.2B | $926.4M | $2.3B | 28.8% |
| Sep 30, 2024 | $3.3B | $904.4M | $2.4B | 27.6% |
| Dec 31, 2024 | $3.3B | $896.3M | $2.4B | 26.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.6 pts
Year-over-year change
Dec 31, 2023
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue increased relative to revenue, compressing gross margin. The decline in gross margin from the prior quarter was the most notable change among the metrics.
Compared to the prior quarter, gross margin weakened, driven by a slightly higher cost of revenue relative to stable revenue. Versus the same quarter last year, gross margin was lower despite higher revenue and gross profit.
Monitor the trajectory of cost of revenue relative to revenue, as its increase was the primary factor behind the gross margin decline.