Labcorp predicts COVID testing sales may fall up to 90% in 2023

Laboratory Corp of America Holdings on Thursday predicted that COVID testing sales could fall by up to 90% this year after nearly two years of a boost to its diagnostics unit during the pandemic.

The forecast echoes the fortune of other COVID product makers such as Abbott Laboratories and Quest Diagnostics , which have seen their revenues from tests slump with a decline in cases.

However, Labcorp's forecast is steeper than that of its closest rival Quest, which sees COVID sales declining by as much as 88% this year.

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For the fourth quarter, the laboratory operator's sales declined about 9% to $3.67 billion and missed estimates of $3.74 billion, according to IBES data from Refinitiv.

However, it beat analysts' estimates for quarterly profit, helped by growth in sales in the company's base business, which excludes COVID-19 testing.

Excluding items, Labcorp reported a profit of $4.14 per share for the quarter ended Dec. 31, above analysts' estimates of $4.10.

The North Carolina-based company forecast an adjusted profit for 2023 in the range of $16 to $18 per share, compared with analysts' estimates of $17.65.