The aftereffects of the ransomware attack on LabCorp have not finished yet. Moreover, the Hurricane Florence put over an additional strain over the medical giant. As a result, the company’s stocks have taken a sharp hit.
In a recent announcement, a spokesperson from the company explained that the ransomware attack and hurricane managed to reduce almost 10 cents per share, decreasing their value to $2.74. Due to the adjustments of its earnings, the company’s stock fell by almost 5 percent or $7.50 per share. The closing price plummeted from $168.60 to $161.10.
However, the company also announced an 8 percent increase in its revenues. However, the earnings by the company are well below the mark that was estimated by Wall Street experts, something that has been attributed to the company’s breach in July. The medical giant revealed $2.83 billion in revenue, again missing WallStreet estimations.
The company’s chairman, David King, expressed satisfaction with the company’s progress and especially complimented the output generated from Covance Drug Development –– LabCorp’s child company. He explained that Covance increased its orders and gained quite a strong margin expansion. For LabCorp, King stated that the company met its goals and delivered on its target by maintaining the growth of volume and revenues.
This year, in July, LabCorp discovered a ransomware corrupting its systems. As a result, the company faced significant damages and had to shut down its systems for ransomware removal and recovery. The shutting down of these systems meant that the affected patients could neither view their test reports nor receive them. LabCorp is extensively used by hospitals for patient tests. Luckily, the company’s Covance Drug Development group could not be breached.
The example of LabCorp dictates how dealing with a ransomware is not only limited to initial ransomware removal and recovery processes, but it can also affect other aspects of a business.
