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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