Quest Diagnostics Lifts Annual Guidance On Higher COVID-19 Test Revenue Anticipation
Quest Diagnostics Inc (NYSE: DGX) posted a better-than-expected Q2 FY22 adjusted EPS of $2.36, though down 25.8% Y/Y, beating the consensus of $2.20.
Sales came in at $2.45 billion, a decline of 3.8% Y/Y, higher than the Wall Street estimate of $2.34 billion.
COVID-19 testing revenues fell 30.5% to $355 million, while Base business revenues improved 2.9% to $2.10 billion.
"In Q2, our base business revenues grew year over year while we increased our share of COVID-19 molecular testing thanks largely to our expanded retail relationships," said Jim Davis, CEO-elect.
Adjusted operating margin compressed to 17.7% from 22.9% a year ago.
Outlook: Quest Diagnostics expects FY22 sales of $9.50 billion - $9.75 billion (prior view $9.2 billion - $9.5 billion), compared to the consensus of $9.42 billion.
The company tightened its Base revenue guidance to $8.35 billion - $8.45 billion (prior guidance of $8.35 billion - $8.50 billion).
The company anticipates higher COVID-19 testing revenues of $1.15 billion - $1.30 billion (prior forecast of $0.85 billion - $1.0 billion).
The company forecasts adjusted EPS of $9.55 - $9.95 compared to the prior guidance of $9.00-$9.50, versus the consensus of $9.33.
Price Action: DGX shares are up 0.12% at $135.00 during the premarket session on the last check Thursday.
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