Quest Diagnostics Inc

Latest Results (17.12.2024):

Revenue Growth

Quest Diagnostics Inc reported strong financial results for the third quarter of 2024, with revenues reaching $2.49 billion. This marks an 8.5% increase compared to the same period in 2023. The growth was primarily driven by new customer acquisitions, expanded business operations, and recent strategic acquisitions.

Earnings Per Share

For the third quarter of 2024, Quest Diagnostics Inc reported a diluted earnings per share (EPS) of $1.99, reflecting a 1.5% increase from the previous year. The adjusted diluted EPS saw a more significant rise of 3.6%, reaching $2.30, indicating improved profitability for the company.

Full-Year Guidance

Quest Diagnostics Inc has updated its full-year 2024 guidance, now projecting revenues between $9.80 billion and $9.85 billion. The company expects reported diluted EPS to be in the range of $7.60 to $7.70, with adjusted diluted EPS anticipated to be between $8.85 and $8.95. This guidance takes into account recent acquisitions and the anticipated impact of Hurricane Milton in the fourth quarter.

Acquisition Strategy

The company's acquisition strategy is proving effective, with plans to complete eight acquisitions by the end of the year. These strategic moves, including the acquisition of LifeLabs, are contributing to Quest Diagnostics Inc's top-line growth and positioning the company for accelerated revenue and earnings growth in 2025.

Cash Flow and Operating Income

Quest Diagnostics Inc reported a 72.5% increase in cash provided by operations, amounting to $356 million for the quarter. However, operating income decreased by 3.3% to $330 million, and operating income as a percentage of net revenues declined to 13.3%. This slight decline warrants monitoring for potential margin pressures in the evolving healthcare environment.