August 1, 2021

The World Stock Markets Tips & Targets, News, Views & Updates

The World Stock Markets Tips & Targets, News, Views & Updates

Quest Diagnostics adjusted profit more than doubles, beat expectations

Quest Diagnostics Inc. DGX, -0.36% reported Thursday second-quarter adjusted profit that more than doubled to beat expectations, as revenue also topped forecasts, as the recovery in the lab results and diagnostics company cited a faster-than-expected recovery in its base business. Net income rose to $631 million, or $4.96 a share, from $185 million, or $1.36 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share grew to $3.18 from $1.42, beating the FactSet consensus of $2.87. Revenue increased 39.5% to $2.55 billion, above the FactSet consensus of $2.39 billion, as diagnostics information services revenue rose 40.2% to $2.47 billion. For 2021, the company expects revenue of $9.54 billion to $9.79 billion, compared with expectations of $9.45 billion, and expects adjusted EPS of $10.65 to $11.35 vs. expectations of $11.13. “his was the first quarter since 2019 that organic base testing revenues grew in the quarter, driven by contributions from new hospital lab management contracts as well as people returning to the healthcare system,” said Chief Executive Steve Rusckowski. The stock, which was still inactive in premarket trading, has rallied 13.9% year to date while the S&P 500 SPX, +0.82% has gained 16.0%.

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