Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $2.49 billion, representing an 8.5% increase year-over-year, with organic revenue growth of 4.2% driven by new customer wins and acquisitions [16][18] - Reported operating income was $330 million, or 13.3% of revenues, compared to $342 million, or 14.9% of revenues last year; adjusted operating income was $385 million, or 15.5% of revenues, compared to $380 million, or 16.6% last year [18] - Reported EPS was $1.99, up from $1.96 a year ago; adjusted EPS was $2.30 versus $2.22 the prior year [18][19] Business Line Data and Key Metrics Changes - Diagnostic information services revenue increased by 9% year-over-year, reflecting strong growth in physician and hospital channels, along with contributions from recent acquisitions [16][18] - Physician lab services experienced high single-digit revenue growth, driven by new customer wins and increased utilization of advanced diagnostics [9] - Consumer-initiated testing revenues grew over 40%, with a repeat customer rate increasing to 30% from less than 10% two years ago [12] Market Data and Key Metrics Changes - Total volume measured by requisitions increased by 5.5% year-over-year, with acquisitions contributing 5% to total volume [17] - The company renewed a national health plan agreement with Elevance Health, extending reach in Virginia, Georgia, Colorado, and Nevada, which previously had limited access [10] Company Strategy and Development Direction - The company’s growth strategy focuses on delivering solutions for core customers, including advanced diagnostics in faster-growing clinical areas such as brain health and molecular genomics [8] - Acquisitions are a key growth driver, with an emphasis on outreach purchases and independent labs; the company is on track to complete eight acquisitions in 2024 [6][24] - Operational improvements are being driven through automation and AI to enhance quality, service, and efficiency [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong organic growth and the potential for accelerated revenue and earnings growth in 2025, driven by acquisitions and advanced diagnostics [24] - The company anticipates a revenue range of $9.8 billion to $9.85 billion for 2024, with adjusted EPS expected between $8.85 and $8.95 [19][21] - Management noted that the impact of Hurricane Milton is expected to negatively affect revenues by approximately $15 million and EPS by about $0.08 in Q4 [20] Other Important Information - The company completed the acquisition of LifeLabs, which is expected to provide a strong foundation for expansion in Canada, where demographics are more favorable than in the U.S. [6][61] - The company is collaborating with Hologic to include their automated cytology solution, which utilizes AI for cervical cancer screening [15] Q&A Session All Questions and Answers Question: How do you think the organic growth profile of the business will do in 2025? - Management expects organic growth to be approximately 3%, driven by strong utilization and improvements in revenue per requisition [26] Question: Can you talk about the margin impact from LifeLabs and the M&A pipeline? - LifeLabs is expected to have a slight negative impact on margins initially, but profitability is expected to improve over time; the M&A pipeline remains strong with a focus on smaller outreach deals [34][37] Question: Why weren't you in the Elevance and Sentara Health contracts previously? - The company was previously out of network in certain states and is now included due to the commitment from health plans to independent labs that offer quality and competitive pricing [40] Question: Can you confirm the DCP impact in the quarter? - DCP had a negative impact on operating margin in the quarter, with an increase of about $10 million year-over-year [53] Question: Are there specific geographies where you’re seeing market share gains from hospital outreach deals? - The company has gained a strong presence in markets like Minneapolis and Columbus, where previously independent physicians were largely using health system labs [56]

Quest Diagnostics Inc DGX posted third-quarter adjusted earnings per share of $2.30, beating the consensus of $2.26.Sales increased 8.5% year-over-year to $2.49 billion, beating the consensus of $2.42 billion.Quest Diagnostics saw total revenue growth of 8.5%, including 4.2% organic growth, said Quest Diagnostics CEO Jim Davis. “Our performance was driven by new customer wins and expanded business with physicians and hospitals, as well as recent acquisitions, including LifeLabs,” he added. “We are now on tr ...

Quest Diagnostics Incorporated’s (DGX) third-quarter 2024 adjusted earnings per share (EPS) of $2.30 beat the Zacks Consensus Estimate by 1.8%. The metric also exceeded the year-ago adjusted figure by 3.6%.Certain one-time expenses, like the ones related to amortization expenses, certain restructuring and integration charges, other expenses and excess tax benefits associated with stock-based compensations, were excluded from the quarter’s adjusted figures.GAAP earnings came in at $1.99 per share, up 1.5% fr ...

Quest Diagnostics (DGX) came out with quarterly earnings of $2.30 per share, beating the Zacks Consensus Estimate of $2.26 per share. This compares to earnings of $2.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.77%. A quarter ago, it was expected that this medical laboratory operator would post earnings of $2.31 per share when it actually produced earnings of $2.35, delivering a surprise of 1.73%.Over the last four qua ...

Revenue and Earnings Performance - Third quarter revenues of $2.49 billion, up 8.5% from 2023[1] - Third quarter reported diluted EPS of $1.99, up 1.5% from 2023; adjusted diluted EPS of $2.30, up 3.6% from 2023[1] - Full year 2024 revenues expected to be between $9.80 billion and $9.85 billion; reported diluted EPS expected to be between $7.60 and $7.70; adjusted diluted EPS expected to be between $8.85 and $8.95[1] - Diagnostic Information Services revenues of $2.427 billion, up 9.0% from 2023[2] - Revenue per requisition increased by 3.3% and requisition volume increased by 5.5% in the third quarter[2] - Adjusted operating income increased by 1.3% to $385 million in the third quarter[2] - Adjusted net income attributable to Quest Diagnostics increased by 3.1% to $262 million in the third quarter[2] - Net income attributable to Quest Diagnostics was $649 million for the nine months ended September 2024, slightly down from $662 million in 2023[14] - Diluted earnings per share (EPS) for the nine months ended September 2024 was $5.74, compared to $5.79 in 2023[14] - Adjusted operating income for the nine months ended September 2024 was $1,132 million, representing 15.6% of net revenues[17] - Adjusted diluted EPS for the nine months ended September 2024 was $6.70, up from $5.79 in 2023[17] - Operating income for the nine months ended September 30, 2023, was $995 million, representing 14.3% of net revenues[19] - Adjusted operating income for the same period was $1,119 million, or 16.1% of net revenues[19] Cash Flow and Financial Position - Cash provided by operations increased by 72.5% to $356 million in the third quarter[2] - Net cash provided by operating activities was $870 million for the nine months ended September 2024, compared to $745 million in the same period in 2023[13] - Cash and cash equivalents increased to $764 million in September 2024 from $686 million in December 2023[11] - Long-term debt rose to $5,648 million in September 2024 from $4,410 million in December 2023[11] - Business acquisitions, net of cash acquired, totaled $1,781 million for the nine months ended September 2024[13] - Capital expenditures were $302 million for the nine months ended September 2024, down from $336 million in 2023[13] Acquisitions and Growth - The company has completed eight acquisitions by year-end, contributing to revenue growth and profitability[2] - Total assets increased to $16,095 million in September 2024 from $14,022 million in December 2023, reflecting growth in goodwill and intangible assets[11] - Pre-tax losses of $13 million are expected in 2024 due to the increase in fair value of contingent consideration from previous acquisitions[24] - Pre-tax losses of $11 million are anticipated in 2024 from changes in the carrying value of strategic investments[24] - A non-recurring pre-tax gain of $8 million is expected in 2024 from a foreign exchange forward contract related to an acquisition[25] Restructuring and Integration - Restructuring and integration charges for the nine months ended September 30, 2023, totaled $32 million, with a pre-tax impact of $45 million[21] - Estimated pre-tax restructuring and integration charges for 2024 are $50 million, primarily related to workforce reductions[24] - Estimated pre-tax amortization expenses for 2024 are $129 million[24] - Amortization expense for the nine months ended September 30, 2023, was $81 million[19] External Factors Impact - The company expects Hurricane Milton to negatively impact net revenues by approximately $15 million and EPS by approximately 8 cents in the fourth quarter[3]

Wall Street expects a year-over-year increase in earnings on higher revenues when Quest Diagnostics (DGX) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 22, 2024, might help the stock move higher if these key numbers are bette ...

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The medical laboratory testing industry is growing at a 1-3% compound annual growth rate and is dominated by two publicly traded companies. Quest Diagnostics (NYSE: DGX ) is the stronger of the two companies and is actively I am an individual investor with over two decades of investing experience. I am passionate about finding great value buys and pursuing dividend growth investing, from domestic to international companies. I invest in businesses, not stocks!I cover all aspects of value investing, dividend ...

Quest Diagnostics (DGX) is set to release its third-quarter 2024 results on Oct. 22, before the opening bell. The medical diagnostic testing provider posted adjusted earnings per share (EPS) of $2.35 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 1.73%. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 3.31%. Find the latest EPS estimates and surprises on Zacks Earnings Calendar. DGX's Q3 Estimates For the third quarter of ...

Goal to broaden access to cost-effective and innovative laboratory services in Ohio SECAUCUS, N.J., Oct. 14, 2024 /PRNewswire/ -- Quest Diagnostics (NYSE: DGX), a leader in diagnostic information services, today announced that it has completed its previously announced acquisition of select laboratory assets from OhioHealth, a nationally recognized not-for-profit, charitable, integrated health system. Financial terms of the transaction were not disclosed. The goal of the transaction is to broaden access to c ...