(Reuters) -Laboratory Corp of America Holdings raised its annual profit forecast on Thursday as a rebound at its unit performing clinical trials for drugmakers helped soften the blow from declining COVID-19 testing demand.
Labcorp and other test providers, who raked in millions through coronavirus test-related sales, have seen testing volumes decline as more Americans get vaccinated.
Last week, rival Quest Diagnostics Inc warned molecular testing volumes will likely soften by the end of year, as infections decline.
Labcorp saw a decrease in COVID-19 PCR and antibody testing in the quarter, while revenue at its unit, which offers clinical trial services for drugmakers, rose 17.5%.
The company now expects 2021 adjusted profit between $26 and $28 per share, compared with its previous outlook of $21.50 to $25 per share.
Labcorp’s net income fell to $587.3 million, or $6.05 per share, in the third quarter ended Sept. 30, from $703.4 million, or $7.17 per share, a year earlier.
(Reporting by Oishee Majumdar and Mrinalika Roy in Bengaluru; Editing by Shailesh Kuber)
