Shares of Labcorp gained 4.2% in premarket trading on Thursday after beating earnings expectations for the second quarter and announcing plans to spin off its clinical-development business, which provides contract-research organization services, next year. The company reported earnings of $358.6 million, or $3.87 per share, in the second quarter of 2022, compared with $467.4 million, or $4.76 per share, in the same three months of last year. Adjusted earnings per share were $4.96, against a FactSet consensus of $4.70. It had $3.7 billion in revenue for the quarter, down from $3.8 billion in the second quarter of 2021. The FactSet consensus was $3.7 billion. The decline in revenue was driven in part by a dropoff in COVID-19 PCR and antibody tests. Labcorp updated its guidance for the year, saying it now expects adjusted EPS of $19.00 to $21.25 instead of $18.25 to $21.00. The company’s stock has tumbled 20.6% this year, while the broader S&P 500 is down 15.6%.

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