What caused the sharp rise in net profit for Q1 2024?

The sharp rise in net profit for Q1 2024 can be attributed to several key factors:

1. Organic Revenue Growth: Labcorp's Diagnostics Laboratories segment experienced a 7.9% increase in revenue, reaching $2.52 billion. This growth was driven by a 4.5% increase in the company's organic Base Business, despite a 0.7% decrease in COVID-19 testing.
2. Acquisitions and Divestitures: The contribution from acquisitions, net of divestitures, was 4%. Strategic acquisitions have been a key component of Labcorp's growth strategy, enhancing its service offerings and market presence.
3. Foreign Currency Translation: Although this factor had a minimal impact of 0.3%, it still contributed to the overall revenue growth.
4. Cost Management: Despite a 16 basis point contraction in gross margin and an 11.7% surge in SG&A expenses, Labcorp's adjusted net income increased by 2.9% year-over-year to $290.4 million. Effective cost management and operational efficiency likely played a role in maintaining profitability.

In summary, the combination of organic revenue growth, strategic acquisitions, favorable currency translation, and strong cost management contributed to Labcorp's significant net profit increase in Q1 2024.