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 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 $1.41 per share, over the last 30 days. Quest Diagnostics’ second quarter adjusted earnings of $1.55 per share, up 15.7% on year-over-year basis and has surpassed this estimate by 9.9%.
Revenues: Quest Diagnostics posted revenues of $1.94 billion in the reported quarter, up 1.9% year-over-year and has missed the Zacks Consensus Estimate for revenues of $1.95 billion.
Key Stats: Quest Diagnostics’ volume, measured by the number of requisitions, increased 1.8% on a year-over-year basis. However, revenue per requisition increased 0.7% on a year-over-year basis.
Major Factors: Per management, the company achieved leadership position in advanced diagnostics with the recently-completed acquisition of Med Fusion and ClearPoint. The company gained market traction in the second quarter banking on the strategy of being the consumer-friendly provider of diagnostic information services through the growing presence in Safeway stores and also innovative relationship with Walmart. The company has raised outlook for full year 2017 revenues, diluted EPS and cash provided by operations.
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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