Quest Diagnostics Incorporated

Quest Diagnostics Incorporated (DGX - Snapshot Report) recently delivered strong first-quarter results. Earnings per share of 89 cents topped the year-prior 72 cents and exceeded analysts’ expectations by 8.5%.

Company Description

Quest Diagnostics Incorporated provides diagnostic testing, information and services for patients and doctors all over the world. The company offers the broadest access to diagnostic testing services through its network of laboratories and patient service centers. Quest Diagnostics also provides interpretive consultation through its extensive medical and scientific staff. The company is consider to be a pioneer in developing innovative diagnostic tests and advanced healthcare information technology solutions that help improve patient care.

An Excellent Quarter

Quest Diagnostics recently delivered strong first-quarter results. Earnings per share of 89 cents topped the year-prior 72 cents and exceeded analysts’ expectations by 8.5%.

First quarter revenues jumped 1.3% to $1.8 billion on a year-over-year basis. Clinical testing revenues grew 2.2% from last year.

"We began the year with a strong first quarter, delivering a 24% increase in earnings per share," said Surya N. Mohapatra, Ph.D., Chairman and Chief Executive Officer. "These results reflect our continued focus on growing esoteric testing, including cancer diagnostics, and our program to drive sustainable operating efficiencies, as well as effective cost management in the quarter. We are executing our plan, and for 2009 continue to expect revenue growth of 3%. Reflecting our strong performance in the quarter, today we are raising our guidance for earnings per share."

The company hiked its full-year earnings guidance, which now ranges between $3.65 and $3.75 per share.

Analysts are looking for $3.69 per share, up from last month’s $3.58. For 2010, analysts are forecasting earnings of $3.99 per share, above the previous month’s $3.94.

Favorable Industry Comparisons

Quest Diagnostics offers a return on equity (ROE) of 18%, topping the industry’s average of 16%. The company’s net profit margin of 8% is ahead of the industry’s average of 6%. DGX rewards shareholders with a dividend, yielding an industry-leading 1%.