Quest Diagnostics Inc (DGX) Reports Q3 2023 Earnings, Updates Full Year Guidance
Q3 2023 revenues of $2.30 billion, down 7.7% from 2022
Reported diluted EPS of $1.96, down 9.7% from 2022; adjusted diluted EPS of $2.22, down 5.9% from 2022
Base business revenues of $2.27 billion, up 4.6% from 2022
Full year 2023 revenues now expected to be between $9.19 billion and $9.24 billion
Quest Diagnostics Inc (NYSE:DGX), a leading provider of diagnostic information services, released its Q3 2023 earnings report on October 24, 2023. Despite a decrease in overall revenues, the company's base business revenues showed growth, largely due to strength in their physician and hospital channels.
Financial Highlights
Quest Diagnostics reported Q3 revenues of $2.30 billion, a decrease of 7.7% from 2022. The reported diluted earnings per share (EPS) was $1.96, down 9.7% from 2022, and the adjusted diluted EPS was $2.22, down 5.9% from 2022. However, the company's base business revenues were $2.27 billion, up 4.6% from 2022.
Jim Davis, Chairman, CEO, and President of Quest Diagnostics, commented on the results:
We grew our base business revenues nearly 5% in the third quarter, largely due to strength in our physician and hospital channels. In addition, we are pleased that we have now successfully negotiated all of our strategic health plan renewals that were scheduled for this year."
Updated Guidance for Full Year 2023
Quest Diagnostics updated its full year 2023 guidance. The company now expects revenues to be between $9.19 billion and $9.24 billion, with a reported diluted EPS expected to be between $7.61 and $7.71, and an adjusted diluted EPS expected to be between $8.65 and $8.75.
Financial Tables Summary
The financial tables provided in the earnings report show a detailed breakdown of revenues, operating costs, and expenses, net income, and EPS among other financial metrics. The tables also provide a comparison of these metrics between 2023 and 2022, highlighting the changes and trends in the company's financial performance.
Company Outlook
Despite the challenges, Quest Diagnostics remains optimistic about its future growth. Davis added:
Given the strength of our business and a robust pipeline of professional lab services and M&A opportunities, Quest Diagnostics is well positioned for continued growth.
Investors and interested parties can access the full earnings report and financial tables on the company's website.
This article first appeared on GuruFocus.
