"Quest Diagnostics Surpasses Third-Quarter Expectations, Raises Year-End Forecast"

NEW YORK - Quest Diagnostics (NYSE:DGX) reported third-quarter results surpassing analysts' expectations for both revenue and earnings, and raised its year-end revenue forecast. However, the company's shares dropped by 0.94% in early trading as the revenue forecast fell short of expectations.

The diagnostic testing company reported adjusted earnings per share of $2.30, exceeding the analyst expectation of $2.26. Revenue grew by 8.5% compared to the same period last year, reaching $2.49 billion, surpassing analysts' estimates of $2.43 billion.

Chairman, CEO, and President Jim Davis stated, "We had a robust third quarter with total revenue growth of 8.5%, of which 4.2% was organic growth. Our performance was driven by new customer wins, expanding business volume with physicians and hospitals, and recent acquisitions including LifeLabs."

Quest raised its revenue expectation for the full year 2024 from the previously announced range of $9.50 billion to $9.58 billion, to a range of $9.80 billion to $9.85 billion. However, the midpoint of the new range is below analysts’ expectations of $9.657 billion. The company maintained its adjusted earnings per share forecast in the range of $8.85 to $8.95.

Quest attributed the improvement in revenue forecast to contributions from recent acquisitions, while stating that the strength of its business positions it well to "deliver accelerated revenue and earnings growth in 2025."