DGX Posts Higher-Than-Expected Q2 EPS, Reduces 2010 Projections

Quest Diagnostics DGX has reported its Q2 income from continuing operations at $195 million, or $1.07 per share, up from $188 million, or $1.00 per share, in the year-ago period. The company’s Q2 revenue has slipped 1.4% y/y to $1.9 billion. Surya N. Mohapatra, Chairman and Chief Executive Officer of DGX, mentioned, "During the second quarter, Quest Diagnostics grew earnings, but a further slowdown in physician office visits contributed to a decline in our revenues." He added, "Our business continues to perform well in a number of areas, including gene-based and esoteric testing, and the long-term trends for our business are extremely favorable. However, revenue softness through the first half has made us more cautious about our full-year outlook, and we have reduced 2010 guidance accordingly. We continue to take actions to accelerate revenue growth, manage our cost structure and invest for the future." DGX has lowered its EPS projections for the year 2010 to $3.90-$4.00 from $4.00-$4.20. The company has also forecast a decline of about 1% y/y in its revenue. The company had earlier projected a 1%-2% rise in its revenue. DGX's shares have slipped 6.37% to $46.77 in pre-market trading. Read more from Benzinga's Company news.