LabCorp (NYSE:LH) reported Wednesday a net loss for the first quarter as the coronavirus pandemic drove up costs and cut demand, prompting the company to withdraw 2020 guidance.
The Burlington, North Carolina-based company reported total revenue of $2.82 billion, up 1% compared to the same time last year. However, the company posted a net loss of $317.2 million, compared to earnings of $185.6 million over the same period last year.
The company reported goodwill costs of $437.4 million that "were triggered by the current economic conditions as a result of the COVID-19 pandemic." It reported another $21.9 million in costs directly related to the coronavirus for the quarter, which ended March 31.
The maker of diagnostic tests said the coronavirus outbreak drove a 50% to 55% plummet in demand for testing services at the end of the quarter compared to the same period last year.
That hit to demand was "marginally offset by an increase in demand for COVID-19 tests," the company said, adding that the drop in volume appears to have stabilized.
To mitigate the effects of the coronavirus pandemic, LabCorp said it is scaling back expenditures and suspending its stock buyback program.
The company said it is also furloughing workers, delaying hiring, reducing contractors and suspending 401(k) contributions for all U.S. employees. The company said it is looking to utilize available federal stimulus programs.
LH shares doffed $8.76, or 5%, to $167.20
