Quest Diagnostics Updates 2021 Outlook On Surging Demand Of COVID-19 Tests

Since Quest Diagnostics Incorporated DGX reported its Q2 FY21 financial results, COVID-19 molecular testing volumes were stronger than anticipated through the end of August.
Related Content: Quest Q2 Earnings Ahead Of Expectation On Recovery Of Non-COVID Business, Issues Mixed FY21 Guidance.
The demand is expected to continue to be stronger than anticipated because of the surge of the Delta variant. The low end of the Company's outlook now assumes average COVID-19 volumes of at least 40,000 molecular tests per day for the second half of the year.
Organic testing volumes in the Company's base business remain consistent with its previous outlook.
Quest Diagnostics expects FY21 sales of $9.84 billion - $10.09 billion, compared to earlier guidance of $9.54 billion- $9.79 billion, compared to the Wall Street sales estimate of $9.79 billion.
It expects an adjusted EPS of $11.65 - $12.35 (consensus $11.38), compared to prior estimate of $10.65 - $11.35.
Quest expects an operating cash flow of at least $2.0 billion.
Also Read: Vapotherm Raises Annual Sales Outlook Amid Surge In COVID-19 Cases.
Price Action: DGX stock is up 1.30% at $160.06 during the market session on the last check Thursday.

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