Quest Diagnostics Q4 Earnings, FY22 Reflects Lower Demand For COVID-19 Testing Services

Quest Diagnostics Incorporated DGX posted a better-than-expected Q4 adjusted EPS of $3.33, down 25.7% Y/Y, beating the consensus estimate of $3.17.

• Sales came in at $2.74 billion, a decline of 8.6% Y/Y, higher than the Wall Street estimate of $2.66 billion.
• COVID-19 testing revenues fell 37% to $722 million, while Base business revenues improved 9.3% to $2.02 billion.
• Adjusted operating margin compressed to 21.1% from 28.6% a year ago.
• Dividend: Quest Diagnostics increased its quarterly dividend by 6.5% to $0.66 per share, payable on April 20, with a record date of April 6.
• Outlook: Quest Diagnostics expects FY22 sales of $9.0 billion - $9.5 billion, down (16.6)% - (11.9)%, compared to the consensus of $ $9.21 billion.
• Base revenue is expected to increase 3.5% - 6% to $8.3 billion - $8.5 billion.
• The Company anticipates COVID-19 testing revenues to decline (74.7)% - (63.9)% to $0.7 billion - $1.0 billion.
•  The Company forecasts adjusted EPS of $8.65-$9.35, versus the consensus estimate of $8.71.
• Price Action: DGX shares are up 1.56% at $138.03 during the market session on the last check Thursday.