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Quest Diagnostics (DGX) Tops Q1 Earnings & Sales 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 #2 (Buy) but that could change following its strong first quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. We have highlighted some of the key details from the just-released announcement below:

Earnings: The Zacks Consensus Estimate for the current quarter is $1.17 per share, over the last 30 days. Quest Diagnostics’  first quarter adjusted earnings of $1.33 per share, up 17.7% year-over-year has surpassed this estimate by 12.03%.

Revenues: Quest Diagnostics posted revenues of $1.90 billion in the reported quarter, up 1.9% year-over-year and has outpaced the Zacks Consensus Estimate for revenues of $1.87 billion.

Key Stats: Quest Diagnostics’ volume, measured by the number of requisitions, increased 3.5% versus the prior year’s volume. However, revenue per requisition dropped 0.2% on a year-over-year basis.

Major Factors: The company delivered solid growth in the first quarter with gains in revenues, earnings per share, operating income, margins and operating cash flow. Growth in the quarter was led by strategic collaborations with hospital health systems.  The agreement with PeaceHealth in the Pacific Northwest announced in the first quarter is expected to further bolster its growth later in the year. The company’s management has revised its bottom line guidance for full year 2017.

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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