- Quest Diagnostics updated its full-year adjusted earnings per share (EPS) forecast to a range of $8.85 to $8.95, slightly adjusting from the earlier prediction of $8.80 to $9.00.
- The company expects net revenue for the year to be between $9.80 billion and $9.85 billion, up from the previous forecast of $9.50 billion to $9.58 billion. Analysts estimated $9.68 billion.
- For the third quarter, Quest Diagnostics reported an adjusted EPS of $2.30, surpassing the $2.25 estimate. Actual EPS was $1.99.
- Net revenue for the third quarter amounted to $2.49 billion, beating the $2.43 billion estimate.
- Adjusted operating profit for the third quarter was $385 million, slightly below the $394 million expectation.
- The adjusted operating margin for the quarter stood at 15.5%, compared to an estimate of 16.4%.
- Capital expenditure for the third quarter was $106 million, just below the forecast of $109.3 million.
- Revenue from Diagnostic Information Services reached $2.43 billion in the third quarter, exceeding the forecast of $2.36 billion.
- The company’s strong performance was attributed to new customer acquisitions, increased business with healthcare providers, and acquisitions like LifeLabs.
- Despite challenges like Hurricane Milton, Quest Diagnostics increased its 2024 revenue guidance, sustaining the adjusted EPS guidance midpoint.
- The firm anticipates accelerated revenue and earnings growth in 2025, driven by business strength and acquisition contributions.
- Analyst ratings include 7 buy recommendations and 12 holds, with no sell recommendations.
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Quest Diagnostics on Smartkarma
Analyst coverage of Quest Diagnostics on Smartkarma indicates positive sentiments regarding the company’s recent financial performance and growth prospects. Baptista Research published two insightful reports on Quest Diagnostics. In one report titled “Quest Diagnostics: Will The Acquisition of Canadian Lab Provider LifeLabs Be A Game Changer? – Major Drivers,” the analysts highlighted a 2.5% total revenue increase and nearly 4% growth in base business revenues. This growth is attributed to the expansion of new customers and improved test mix, particularly in advanced diagnostics.
Another report by Baptista Research, “Quest Diagnostics: Strengthening Revenue Growth Across Core Services! – Major Drivers,” emphasized the company’s promising Q1 results, with nearly 6% base business revenue growth. Quest Diagnostics‘ strategic focus on physicians, hospitals, automation, and AI investments has been key to its success. The analysts see potential for continued growth and customer acquisition driven by the company’s strong commercial strategies and broad health plan access.
A look at Quest Diagnostics Smart Scores
Factor | Score | Magnitude |
---|---|---|
Value | 3 | |
Dividend | 3 | |
Growth | 3 | |
Resilience | 2 | |
Momentum | 4 | |
OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Quest Diagnostics, a leading provider of diagnostic testing and services, is positioned for a favorable long-term outlook based on the Smartkarma Smart Scores. With a strong momentum score of 4, the company shows significant potential for growth and upward movement. This indicates positive market sentiment and investor interest in Quest Diagnostics, pointing towards a promising future for the company.
Furthermore, Quest Diagnostics scores well in areas such as value, dividend, and growth, all receiving a score of 3. This demonstrates solid fundamentals and the company’s ability to generate value for investors while potentially offering attractive dividend returns. Although resilience scores slightly lower at 2, the overall Smartkarma Smart Scores suggest a overall positive outlook for Quest Diagnostics, making it a company to watch in the diagnostic testing industry.
Summary: Quest Diagnostics Incorporated provides diagnostic testing, information, and services, operating a network of full-service laboratories and patient service centers. Their services include esoteric testing, routine medical testing, drugs of abuse testing, and non-hospital-based anatomic pathology testing.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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