- Quest Diagnostics has updated its forecast for the Fiscal Year (FY). The reference is in regards to adjusted earnings per share (EPS) which is now projected to be between $8.72 and $8.97, up from the previous forecast of $8.60 to $8.90. The consensus estimate was $8.75.
- The company has predicted a net revenue range of $9.40 billion to $9.48 billion. Earlier, this range was forecasted to be from $9.35 billion to $9.45 billion. The estimated value for net revenue was $9.4 billion.
- There is also an expectation for a positive output in terms of revenue growth. The new figures estimate an increase from +1.6% to +2.5%, which shows a marked improvement from the previous estimates of +1.1% to +2.1% advance.
- Focusing on the First Quarter results of 2024, the company realized an adjusted EPS of $2.04, outperforming the estimate of $1.86. Moreover, the net revenue generated was $2.37 billion which again was above the estimated figure of $2.29 billion.
- The diagnostics revenue tallied at $2.30 billion, overshooting the forecasted figure of $2.21 billion.
- Operating profit adjusted for the First Quarter comfortably beat the estimate. The realized figure was $349 million while the expected was $330.8 million.
- Adjusted operating margin stood at 14.8%, outpacing the consensus estimate of 14.6%.
- The company spent less on its capital expenditure than anticipated. The recorded figure came to $104 million, fewer than the estimated $114 million.
- A quote from Mr. Davis mentions the strengthening of Quest Diagnostics‘ business as a reason behind the revised revenue and adjusted earnings guidance for the full year.
- As per the opinions gathered, there are 6 buys, 13 holds, and 0 sells on the company’s stock. This information may have been critical to investors and shareholders.
Quest Diagnostics on Smartkarma
Analysts on Smartkarma, like Baptista Research, are delving into Quest Diagnostics Incorporated’s recent performance and future outlook. In a bullish analysis titled “Quest Diagnostics: Continued Investment in New Technologies and Automated Solutions! – Major Drivers,” Baptista Research highlights the company’s focus on top-line growth and profitability. The report emphasizes Quest Diagnostics‘ shift towards core customer channels and away from COVID-19 testing, resulting in a 7% revenue growth in the base business for 2023. Baptista Research aims to assess various factors impacting the company’s stock price in the near term and undertakes an independent valuation using a Discounted Cash Flow (DCF) methodology.
A look at Quest Diagnostics Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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 Incorporated, a company that provides diagnostic testing services, is viewed favorably for its long-term outlook based on Smartkarma’s Smart Scores. With a balanced overall outlook indicated by its scores across various factors, including value, dividend, growth, momentum, and resilience, Quest Diagnostics seems to be positioned for sustainable performance. While certain areas like resilience may warrant attention, the company’s strong value, dividend, and growth scores suggest a positive trajectory ahead.
Quest Diagnostics operates a national network of testing facilities and service centers, offering a range of diagnostic services to support healthcare needs. The company’s consistent performance in value, dividend, and growth, coupled with its widespread presence and service offerings, underpin its solid foundation for long-term success in the diagnostic testing industry.
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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