Quest Raises FY21 Outlook Again On Strong COVID-19 Volumes In Q3

  • Quest Diagnostics Incorporated DGX has posted a better-than-expected Q3 adjusted EPS of $3.96, down 7.9% Y/Y, beating the consensus estimate of $2.87.
  • Sales came in at $2.77 billion, a marginal decline of 0.4% Y/Y, higher than the Wall Street estimate of $2.45 billion.
  • "In late summer, we experienced some softness in the base business across the country but saw an overall rebound in September," said Steve Rusckowski, Chairman, CEO, and President.
  • Quest witnessed rising labor costs and inflationary pressures. Adjusted operating margin compressed to 25.0% from 29.8% a year ago.
  • Outlook: On higher than anticipated COVID-19 volumes, Quest forecasts FY21 sales of $10.45 billion - $10.60 billion ($9.54 billion - $9.79 billion earlier), higher than the consensus of $10 billion.
  • It also estimated annual adjusted EPS of $13.50 - $13.90, compared to previous guidance of $11.65 - $12.35, versus consensus of $11.93.
  • The company said it performed an average of 83,000 COVID-19 Molecular Tests a day in Q3.
  • Related Link: Quest Diagnostics Updates 2021 Outlook On Surging Demand Of COVID-19 Tests.
  • Price Action: DGX shares are up 2.35% at $150.03 during the premarket session on the last check Thursday.
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