Core Viewpoint - Quest Diagnostics reported quarterly earnings of $2.21 per share, exceeding the Zacks Consensus Estimate of $2.15 per share, and showing an increase from $2.04 per share a year ago, indicating a positive earnings surprise of 2.79% [1] Financial Performance - The company achieved revenues of $2.65 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.46%, and up from $2.37 billion in the same quarter last year [2] - Over the last four quarters, Quest Diagnostics has consistently exceeded consensus EPS estimates and revenue expectations [2] Stock Performance - Quest Diagnostics shares have increased approximately 7.3% since the beginning of the year, contrasting with a decline of 12.3% in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.53 on revenues of $2.68 billion, and for the current fiscal year, it is $9.68 on revenues of $10.76 billion [7] - The trend of estimate revisions for Quest Diagnostics is mixed, which may change following the recent earnings report [6] Industry Context - The Medical - Outpatient and Home Healthcare industry, to which Quest Diagnostics belongs, is currently ranked in the top 8% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - First quarter revenues reached $2.65 billion, representing a 12.1% increase compared to 2024[3] - Reported diluted EPS for the first quarter was $1.94, up 12.8% from 2024; adjusted diluted EPS was $2.21, an increase of 8.3%[3] - Operating income for the first quarter was $346 million, a 15.4% increase from the previous year, with operating income as a percentage of net revenues at 13.0%[2] - Net income for the three months ended March 31, 2025, was $235 million, an increase of 12.99% compared to $208 million in the same period of 2024[20] - Adjusted diluted EPS for the three months ended March 31, 2025, was $2.21, compared to $1.72 in the same period of 2024, reflecting a 28.49% increase[21] Revenue Guidance - The company reaffirmed its full year 2025 revenue guidance, expecting net revenues between $10.70 billion and $10.85 billion, reflecting an increase of 8.4% to 9.9%[4] - The company anticipates full year 2025 reported diluted EPS to be between $8.62 and $8.87, and adjusted diluted EPS to remain between $9.55 and $9.80[3] - The outlook for adjusted diluted EPS for the full year 2025 is estimated to be between $9.55 and $9.80[23] Cash Flow and Operations - Cash provided by operations for the first quarter was $314 million, a significant increase of 103.4% compared to 2024[2] - Net cash provided by operating activities increased to $314 million, up from $154 million year-over-year, representing a growth of 103.9%[20] - The company reported a net cash used in investing activities of $115 million, a decrease from $213 million in the prior year[20] Capital Expenditures - Capital expenditures for the first quarter totaled $117 million, an increase of 11.9% from the previous year[2] - Total capital expenditures for the three months ended March 31, 2025, were $117 million, compared to $104 million in the same period of 2024[20] Assets and Liabilities - Total assets as of March 31, 2025, were $15.80 billion, down from $16.15 billion at the end of 2024[17] - Cash and cash equivalents at the end of the period decreased to $188 million from $474 million, a decline of 60.4%[20] Other Expenses - The company incurred $19 million in restructuring and integration charges during the three months ended March 31, 2025[22] - Estimated pre-tax amortization expenses for the full year 2025 are projected to be $160 million[26] Operational Metrics - Diagnostic Information Services revenues for the first quarter were $2.59 billion, up 12.7% from 2024[2] - Requisition volume increased by 12.4% in the first quarter, although organic requisition volume saw a slight decline of 0.9%[2]

Core Insights - Quest Diagnostics reported strong revenue growth of approximately 12% in Q1 2025, driven by demand recovery and contributions from acquisitions [2][7] - The company reaffirmed its revenue and adjusted EPS guidance for the full year 2025 [2] Financial Performance - Net revenues for Q1 2025 were $2.652 billion, up from $2.366 billion in Q1 2024, representing a 12.1% increase [2][12] - Diagnostic Information Services revenues increased by 12.7% to $2.589 billion [2][12] - Operating income rose to $346 million, a 15.4% increase from $300 million in the previous year [2][12] - Net income attributable to Quest Diagnostics was $220 million, up 13.2% from $194 million [2][12] - Diluted EPS for Q1 2025 was $1.94, reflecting a 12.8% increase from $1.72 in Q1 2024 [2][12] Operational Metrics - Requisition volume increased by 12.4%, while organic requisition volume decreased by 0.9% [2] - Revenue per requisition saw a slight increase of 0.3% [2] Updated Guidance for 2025 - The updated guidance for net revenues is projected between $10.70 billion and $10.85 billion, indicating an increase of 8.4% to 9.9% [3] - Reported diluted EPS is expected to range from $8.62 to $8.87, while adjusted diluted EPS remains between $9.55 and $9.80 [3][7] - Cash provided by operations is anticipated to be approximately $1.5 billion, with capital expenditures around $500 million [3] Cash Flow and Capital Expenditures - Cash provided by operations in Q1 2025 was $314 million, a significant increase of 103.4% from $154 million in Q1 2024 [2][16] - Capital expenditures for the quarter were $117 million, up 11.9% from $104 million [2][16] Balance Sheet Highlights - As of March 31, 2025, total assets were $15.797 billion, down from $16.153 billion at the end of 2024 [14] - Current liabilities decreased to $1.441 billion from $2.169 billion [14] - Total stockholders' equity increased to $6.962 billion from $6.813 billion [14]

Core Viewpoint - The market anticipates Quest Diagnostics (DGX) will report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Quest Diagnostics is expected to post quarterly earnings of $2.16 per share, reflecting a year-over-year increase of +5.9% [3]. - Revenues are projected to reach $2.62 billion, representing a 10.6% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.13% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Quest Diagnostics is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -2.11%, suggesting a bearish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - In the last reported quarter, Quest Diagnostics exceeded the expected earnings of $2.19 per share by delivering $2.23, resulting in a surprise of +1.83% [12]. - The company has beaten consensus EPS estimates in all of the last four quarters [13]. Conclusion - Despite the potential for an earnings beat, Quest Diagnostics does not currently appear to be a strong candidate for exceeding earnings expectations, and investors should consider other influencing factors before making investment decisions [16].

Core Viewpoint - Quest Diagnostics (DGX) is expected to report its first-quarter 2025 results on April 22, with a focus on revenue growth and earnings performance, following a solid performance in 2024 [1][4]. Group 1: Financial Performance - The Zacks Consensus Estimate for Quest Diagnostics' revenues in Q1 2025 is $2.62 billion, reflecting a 10.6% increase from the previous year [2]. - The estimated EPS for Q1 2025 is projected at $2.16, indicating a 5.9% increase compared to the same quarter last year [2]. - Adjusted EPS in the last reported quarter was $2.23, exceeding the Zacks Consensus Estimate by 1.83%, with an average surprise of 3.75% over the last four quarters [1][3]. Group 2: Factors Influencing Performance - The Diagnostic Information Services (DIS) segment is anticipated to show strong growth due to increased utilization of Advanced Diagnostics, particularly in clinical areas [4]. - Demand for AD-detect blood tests for Alzheimer's risk assessment is expected to drive growth in Brain Health, while Women's Health may benefit from prenatal and hereditary genetic testing [4]. - Growth in advanced cardiometabolic and autoimmune testing, along with increased adoption of self-collection options for genital tract infections, is also anticipated [5]. Group 3: Strategic Developments - Recent acquisitions, including assets from University Hospitals, are likely to enhance Quest Diagnostics' test menu and patient access in Ohio [6]. - The company is expected to see revenue growth from new customer wins and expansion among large physician groups and community health centers [6]. - Medicare Advantage plans are projected to contribute to strong volume and revenue growth, supported by partnerships with Elevance Health and Sentara Health Plans [7]. Group 4: Operational Insights - Strategic investments in automation and AI are expected to improve quality, customer experience, and productivity [9]. - The company's operating income (non-GAAP basis) is projected to increase by 5% year over year in Q1 2025 [10].

Core Viewpoint - Quest Diagnostics has launched a new laboratory blood test, AD-Detect™ Abeta 42/40 and p-tau217 Evaluation, which can accurately assess Alzheimer's disease pathology with over 90% sensitivity and specificity, aimed at confirming amyloid brain pathology in patients with mild cognitive impairment or dementia [1][2]. Test Details - The AD-Detect test combines blood levels of amyloid beta (AB) 42/40 and p-tau217, producing an AD-Detect Likelihood Score™ through a proprietary algorithm validated with a cohort from the 1Florida Alzheimer's Disease Research Center [2]. - This test builds on previous AD-Detect tests that assessed individual biomarkers, now providing a more comprehensive evaluation of amyloid brain pathology [3]. Clinical Implications - The test demonstrates a positive predictive value (PPV) and negative predictive value (NPV) of 89% in a population with mild cognitive impairment, with improved predictive values when including ApoE genetic risk marker [6]. - The test's reliability is supported by a heterogeneous population with a low prevalence of beta amyloid PET positivity, indicating its effectiveness in real-world scenarios [6]. Market Position - Quest's AD-Detect suite offers a range of validated blood-based biomarkers, enhancing personalized testing options for providers [4]. - The new test aims to provide scalable, high-volume solutions for Alzheimer's evaluation, potentially reducing the need for more invasive and costly diagnostic methods like PET imaging and lumbar puncture [8]. Access and Availability - The test is available for physicians in the United States, except New York, with blood draws conducted through Quest's extensive network of approximately 8,000 patient access points [10][14]. - Quest Diagnostics serves a significant portion of the U.S. population, with nearly 55,000 employees dedicated to improving health outcomes through diagnostic insights [13]. Industry Context - Nearly 7 million Americans currently have Alzheimer's, a number projected to reach 14 million by 2060, highlighting the growing need for effective diagnostic solutions [11]. - A significant majority of physicians believe that new therapies will transform Alzheimer's into a manageable disease, and they favor blood tests as a more cost-effective alternative to traditional diagnostic methods [11].

Core Insights - Quest Diagnostics has launched a new FDA-cleared HPV self-collection solution to enhance access to HPV screening, aiming to identify women at risk of cervical cancer [1][4][5] - The self-collection option will be available in physician offices and at 2,000 Quest patient service centers across the United States starting next month [2][3] - The initiative follows the successful introduction of self-collection services for other STIs in October 2024, indicating strong demand for discreet self-collection options [2][4] Company Strategy - The new self-collection service allows patients to collect specimens privately, which may help reduce barriers to screening and increase participation among women who might otherwise avoid traditional methods [5][6] - Quest Diagnostics emphasizes the importance of providing options for patients who may feel uncomfortable with clinician-collected tests due to various personal factors [6][7] - The company aims to address the significant decline in cervical cancer screenings, with 4.4 million fewer American women screened in 2021 compared to 2019, and a 1.7% increase in cervical cancer incidence among women aged 30-44 during the same period [6][7] Industry Context - The self-collection method is recognized for its accuracy and potential to increase screening rates in historically underscreened populations, aligning with recent guidelines from the United States Preventive Services Task Force [6][7] - The initiative reflects a broader trend in the healthcare industry towards empowering patients and improving access to preventive care [4][6]

About Quest Diagnostics SECAUCUS, N.J., April 1, 2025 /PRNewswire/ -- Quest Diagnostics Incorporated (NYSE: DGX), a leader in diagnostic information services, announced that it will report first quarter 2025 financial results on Tuesday, April 22, 2025, before the market opens. It will hold its quarterly conference call to discuss the results beginning at 8:30 a.m. Eastern Time on that day. Quest Diagnostics works across the healthcare ecosystem to create a healthier world, one life at a time. We provide di ...

Quest Diagnostics Inc.’s (DGX) investments in Advanced Diagnostics are paying off, aiming to deliver and scale innovative services that improve patient care and drive growth. The company focuses on generating growth through value-creating and strategically aligned acquisitions, emphasizing accretive outreach purchases and other independent labs. A strong focus on operational excellence is highly encouraging for the stock. Meanwhile, unfavorable solvency and a fierce competitive landscape pose risks to its o ...

Company Overview - Quest Diagnostics Inc. has announced a collaboration with Google Cloud to enhance data management, analytics, and patient experience [1] - The company currently has a market capitalization of $18.65 billion [3] - In 2024, Quest Diagnostics has managed over 80 billion data points and fulfilled more than 200 million test requisitions [6] Collaboration with Google Cloud - The partnership aims to strengthen Quest Diagnostics' hybrid cloud strategy by enhancing data and AI capabilities [1] - Quest will utilize Google Cloud's data analytics and generative AI technologies, including Google Agentspace, to automate tasks and improve operations [4] - The collaboration will focus on improving patient engagement and providing personalized health insights [5] Financial Performance and Projections - According to the Zacks Consensus Estimate, Quest Diagnostics' earnings are expected to grow by 8.6% in 2025, with a 9.1% increase in revenues [3] - The company has delivered an average earnings beat of 3.7% over the trailing four quarters [3] Market Trends - The global AI data management market was valued at $25.5 billion in 2023 and is projected to grow at a compound annual growth rate of 22.7% through 2030 [7] - Key drivers for this growth include advancements in AI and Machine Learning, Big Data, and increasing demand for data-driven decision-making [7] Recent Developments - Quest Diagnostics announced the acquisition of select assets from Fresenius Medical Care's Spectra Laboratories to provide laboratory services related to end-stage kidney disease [9] - In the past year, shares of Quest Diagnostics have increased by 29.2%, outperforming the industry growth of 5.1% [10]