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Quest Diagnostics (DGX) Tops Q2 Earnings & Revenue Estimates

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If you are a frequent customer of commercial laboratory testing services in North America, you probably have been offered one or more diagnostic products of one of its leading providers– Quest Diagnostics Inc. (DGX - Free Report) . Apart from the U.S., this company provides its laboratory services in several international markets including parts of India, England, Mexico and Puerto Rico.

Currently, Quest Diagnostics has a Zacks Rank #3 (Hold) but that could change following its strong second quarter 2016 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:

Earnings:The Zacks Consensus Estimate remained steady at $1.31 per share over the last 30 days. Quest Diagnostics’ adjusted earnings per share of $1.34 beat this estimate by 2.3%.  

Revenues:Quest Diagnostics posted revenues of $1.91 billion, beating the Zacks Consensus Estimate for revenues of $1.90 billion.

 

QUEST DIAGNOSTC Price and EPS Surprise

QUEST DIAGNOSTC Price and EPS Surprise | QUEST DIAGNOSTC Quote

 

Key Stats: Quest Diagnostics’ volume, measured by the number of requisitions, increased 1.9% versus the prior year’s volume and revenue per requisition rose by 0.2%. Diagnostic Information Services revenues grew 2.2% year over year.

Major Factors: Quest Diagnostics delivered strong results in the second quarter. According to management, the company’s expanding relationships with hospitals, including the CLP acquisition and Barnabas Health PLS agreement, have been key contributors to this growth. Going forward, management expects Quest Diagnostic’ latest PLS agreement with HCA's HealthONE system to help the company in continuing this momentum.  The company also noticed substantial improvements in its cost savings initiatives as well as customer experience this quarter.

Stock Price: Following the earnings release, share prices did not show any movement in the pre-market trading session.

Check back later for our full write up on this Quest Diagnostics earnings report later!

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