Quest Diagnostics' COVID-19 Testing Sales Decline 28% In Q1; Lifts FY22 EPS Guidance

Quest Diagnostics Inc DGX posted a better-than-expected Q1 FY22 adjusted EPS of $3.22, down 14.4% Y/Y, beating the consensus of $2.97.
Sales came in at $2.61 billion, a decline of 4% Y/Y, slightly lower than the Wall Street estimate of $2.63 billion.
COVID-19 testing revenues fell 27.6% to $599 million, while Base business revenues improved 6.3% to $2.01 billion.
Adjusted operating margin compressed to 21.2% from 26% a year ago.
Outlook: Quest Diagnostics expects FY22 sales of $9.2 billion - $9.5 billion (prior view $9.0 billion - $9.5 billion), compared to the consensus of $9.36 billion.
Base revenue is expected to increase 4.1% - 6% to $8.35 billion - $8.5 billion (prior view $8.3 billion - $8.5 billion).
The company anticipates COVID-19 testing revenues to decline (69.3)% - (63.9)% to $0.85 billion - $1.0 billion (prior forecast $0.7 billion - $1.0 billion).
The company forecasts adjusted EPS of $9.00-$9.50 compared to the prior guidance of $8.65-$9.35, versus the consensus of $9.03.
Price Action: DGX shares closed 1.89% higher at $138.45 on Wednesday.