Quest Q2 Earnings Ahead Of Expectation On Recovery Of Non-COVID Business, Issues Mixed FY21 Guidance

Quest Diagnostics Incorporated DGX posted better-than-expected second-quarter results, as vaccinations and the lifting of lockdowns resulted in recovery in its core non-coronavirus testing businesses.
Q2 adjusted EPS surged almost 125% Y/Y at $3.18, beating the consensus estimate of $2.86.
Sales came in at $2.6 billion, increased 40% Y/Y, and higher than the Wall Street estimate of $2.4 billion.
Q2 revenue from the diagnostic information services business, which provides tests for cancer, cardiovascular diseases, infectious diseases, and neurology, was up 40% to $2.6 billion.
Quest's rival Abbott Laboratories ABT recorded improvements in its non-COVID-19 businesses as vaccinated Americans become more comfortable visiting doctors.
"This was the first quarter since 2019 that organic base testing revenues grew in the quarter," Chief Executive Officer Steve Rusckowski said in a statement.
Outlook: Banking on the improvements, Quest forecast full-year revenue of $9.54 billion - $9.79 billion, higher than the analyst consensus of $9.45 billion.
It also estimated annual adjusted EPS of $10.65 and $11.35, the mid-pint being lower than the Wall Street estimate of $11.13.
Price Action: DGX shares are down 0.57% at $135 during the premarket session on the last check Thursday.

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