Quest Diagnostics reports solid Q3, raises full-year outlook

NEW YORK - Quest Diagnostics (NYSE:DGX ) reported third-quarter results that beat analyst expectations on both the top and bottom lines, while raising its full-year revenue guidance. However, shares slipped 0.94% in early trading as revenue guidance came in below estimates.

The diagnostic testing company posted adjusted earnings per share of $2.30, surpassing the consensus estimate of $2.26. Revenue rose 8.5% year-over-year to $2.49 billion, ahead of analysts' projections of $2.43 billion.

"We delivered a strong third quarter, with total revenue growth of 8.5%, including 4.2% organic growth," said Jim Davis, Chairman, CEO and President. "Our performance was driven by new customer wins and expanded business with physicians and hospitals as well as recent acquisitions, including LifeLabs."

For the full year 2024, Quest now expects revenue between $9.80 billion and $9.85 billion, up from its prior outlook of $9.50 billion to $9.58 billion. However, the midpoint of the new range falls short of the $9.657 billion analysts were anticipating. The company maintained its adjusted EPS guidance of $8.85 to $8.95.

Quest cited contributions from recent acquisitions for the improved revenue outlook, while noting it is "well positioned to drive accelerated revenue and earnings growth in 2025" given the strength of its business.

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Source: Investing.com