Quest Diagnostics’ (DGX - Free Report) second-quarter 2016 adjusted earnings per share (EPS) of $1.34 came 3 cents ahead of the Zacks Consensus Estimate and exceeded the year-ago number by 7.2%.
Adjusted EPS in the reported quarter excludes the gain from the sale of the company's Focus Diagnostics products business, charges related to early retirement of certain debt as well as restructuring and integration costs. Reported EPS in the second quarter came in at $1.37, representing a year-over-year surge of 69.1%.
Reported revenues for the second quarter inched down 1% year over year to $1.91 billion, while it topped the Zacks Consensus Estimate of $1.90 billion. The year over year decline in the reported revenues were due to the company’s strategic divestitures in order to refocus on core diagnostic information services. However, excluding the 2015 clinical trials testing business contribution and Celera products revenue; and Focus Diagnostics products revenues, sales increased 3.6% year over year.
Volume (measured by the number of requisitions) increased 1.9% year over year. Revenue per requisition inched up 0.2% from the year-ago quarter. Diagnostic information services revenues in the quarter grew 2.2% on a year-over-year basis.
Among operating costs, cost of services during the reported quarter was $1.16 billion, down 2.3% year over year. Gross margin came in at 39.4%, up 80 basis points (bps) year over year.
Selling, general and administrative expenses increased 0.2% to $430 million in the reported quarter. Adjusted operating margin showed an improvement of 53 bps to 16.8%, with a 2.2% rise in adjusted operating income to $321 million.
Quest Diagnostics exited the second-quarter 2016 with cash and cash equivalents of $283 million, a 121% surge from the first-quarter 2016. Year-to-date net cash provided by operating activities was $464 million compared with $337 million in the comparable year-ago period.
Through the second quarter, the company repurchased 3.1 million shares for $237 million including 2.8 million shares repurchased under an accelerated share repurchase plan in May 2016 for $212 million. Quest Diagnostics is currently left with $582 million of authorization under the approved share repurchase plan.
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Quest Diagnostics’ (DGX - Free Report) second-quarter 2016 adjusted earnings per share (EPS) of $1.34 came 3 cents ahead of the Zacks Consensus Estimate and exceeded the year-ago number by 7.2%.
Adjusted EPS in the reported quarter excludes the gain from the sale of the company's Focus Diagnostics products business, charges related to early retirement of certain debt as well as restructuring and integration costs. Reported EPS in the second quarter came in at $1.37, representing a year-over-year surge of 69.1%.
Reported revenues for the second quarter inched down 1% year over year to $1.91 billion, while it topped the Zacks Consensus Estimate of $1.90 billion. The year over year decline in the reported revenues were due to the company’s strategic divestitures in order to refocus on core diagnostic information services. However, excluding the 2015 clinical trials testing business contribution and Celera products revenue; and Focus Diagnostics products revenues, sales increased 3.6% year over year.
Volume (measured by the number of requisitions) increased 1.9% year over year. Revenue per requisition inched up 0.2% from the year-ago quarter. Diagnostic information services revenues in the quarter grew 2.2% on a year-over-year basis.
Among operating costs, cost of services during the reported quarter was $1.16 billion, down 2.3% year over year. Gross margin came in at 39.4%, up 80 basis points (bps) year over year.
Selling, general and administrative expenses increased 0.2% to $430 million in the reported quarter. Adjusted operating margin showed an improvement of 53 bps to 16.8%, with a 2.2% rise in adjusted operating income to $321 million.
Quest Diagnostics exited the second-quarter 2016 with cash and cash equivalents of $283 million, a 121% surge from the first-quarter 2016. Year-to-date net cash provided by operating activities was $464 million compared with $337 million in the comparable year-ago period.
Through the second quarter, the company repurchased 3.1 million shares for $237 million including 2.8 million shares repurchased under an accelerated share repurchase plan in May 2016 for $212 million. Quest Diagnostics is currently left with $582 million of authorization under the approved share repurchase plan.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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