Earnings Preview: Quest Diagnostics

Quest Diagnostics DGX will release its quarterly earnings report on Tuesday, 2024-10-22. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Quest Diagnostics to report an earnings per share (EPS) of $2.27.

The announcement from Quest Diagnostics is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.01, leading to a 2.09% increase in the share price on the subsequent day.

Here's a look at Quest Diagnostics's past performance and the resulting price change:

Performance of Quest Diagnostics Shares

Shares of Quest Diagnostics were trading at $149.65 as of October 18. Over the last 52-week period, shares are up 19.88%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Views on Quest Diagnostics

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Quest Diagnostics.

The consensus rating for Quest Diagnostics is Neutral, derived from 5 analyst ratings. An average one-year price target of $157.6 implies a potential 5.31% upside.

Comparing Ratings with Competitors

The following analysis focuses on the analyst ratings and average 1-year price targets of Labcorp Holdings, DaVita and R1 RCM, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• As per analysts' assessments, Labcorp Holdings is favoring an Neutral trajectory, with an average 1-year price target of $256.09, suggesting a potential 71.13% upside.
• DaVita is maintaining an Neutral status according to analysts, with an average 1-year price target of $162.0, indicating a potential 8.25% upside.
• As per analysts' assessments, R1 RCM is favoring an Neutral trajectory, with an average 1-year price target of $14.3, suggesting a potential 90.44% downside.

Insights: Peer Analysis

In the peer analysis summary, key metrics for Labcorp Holdings, DaVita and R1 RCM are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Quest Diagnostics ranks in the middle for revenue growth among its peers. It has the highest gross profit margin. In terms of return on equity, it is also in the middle.

Get to Know Quest Diagnostics Better

Quest Diagnostics is a leading independent provider of diagnostic testing, information, and services in the U.S. The company generates over 95% of its revenue through clinical testing, anatomic pathology, esoteric testing, and substance abuse testing with specimens collected at its national network of roughly 2,300 patient service centers, as well as multiple doctors offices and hospitals. The firm also runs a much smaller diagnostic solutions segment that provides clinical trials testing, risk assessment services, and information technology solutions.

Unraveling the Financial Story of Quest Diagnostics

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Quest Diagnostics's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 2.52%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: Quest Diagnostics's net margin excels beyond industry benchmarks, reaching 9.51%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Quest Diagnostics's ROE stands out, surpassing industry averages. With an impressive ROE of 3.49%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Quest Diagnostics's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.64% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Quest Diagnostics's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.77.

To track all earnings releases for Quest Diagnostics visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.