NYSE$DGX

Quest Diagnostics Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a decrease in revenue and EPS due to decline in COVID-19 testing revenue, while base business showed strong growth and full-year guidance was raised.

Quest Diagnostics reported a decrease in first-quarter revenue by 4.0% to $2.61 billion, with a diluted EPS of $2.92, down 15.6% compared to the previous year. However, the base business revenues increased by 6.3%. The company raised its full-year 2022 guidance, expecting a reported diluted EPS between $7.88 and $8.38 and an adjusted diluted EPS between $9.00 and $9.50.

  • First quarter revenues decreased by 4.0% to $2.61 billion.
  • Reported diluted EPS decreased by 15.6% to $2.92.
  • Base business revenues increased by 6.3% to $2.01 billion.
  • Full year 2022 reported diluted EPS is now expected to be between $7.88 and $8.38.

Headline financials

Total Revenue

$2.61B

Previous: $2.72B-4.0%
EPS (adj)

$3.22

Previous: $3.76-14.4%
Revenue per requisition growth

-5.2%

Previous: 20.5%-125.4%
Requisition volume change

1.3%

Previous: 25.6%-94.9%
Capital Expenditures

-$63M

Previous: -$86M+26.7%
Free Cash Flow

$292M

Previous: $383M-23.8%
Net Income

$355M

Previous: $469M-24.3%
Operating Income

$513M

Previous: $660M-22.3%
Gross Profit

$965M

Previous: $1.09B-11.8%
Cash & Equivalents

$712M

Previous: $1.23B-42.1%
Total Assets

$13.4B

Previous: $13.9B-3.5%
Stock-Based Comp

$18M

Previous: $18M+0.0%

Revenue & EPS history

Quest Diagnostics · Revenue · Quarterly

$2.61B

Q1 2022-4%vs Q1 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Quest Diagnostics · $2.38B total across 1 segment · Q2 2022

  • Diagnostic information services
    $2.38B

Forward guidance

The company raises its Full Year 2022 guidance as follows: Net revenues $9.2 billion to $9.5 billion, Base business revenues $8.35 billion to $8.50 billion, COVID-19 testing revenues $0.85 billion to $1.00 billion, Reported diluted EPS $7.88 to $8.38, Adjusted diluted EPS $9.00 to $9.50, Cash provided by operations At least $1.6 billion, Capital expenditures Approximately $400 million.

Tailwinds

  • Net revenues are expected to be between $9.2 billion and $9.5 billion.
  • Base business revenues are expected to increase by 4.1% to 6.0%.
  • COVID-19 testing revenues are expected to be between $0.85 billion and $1.00 billion.
  • Reported diluted EPS is expected to be between $7.88 and $8.38.
  • Adjusted diluted EPS is expected to be between $9.00 and $9.50.

Headwinds

  • Net revenues are expected to decrease by 14.7% to 11.9%.
  • COVID-19 testing revenues are expected to decrease by 69.3% to 63.9%.
  • Capital expenditures are expected to be approximately $400 million.
  • The company's future performance is subject to risks and uncertainties, including the impact of the COVID-19 pandemic.
  • Adverse results from pending or future government investigations, lawsuits or private actions could negatively impact the company's financial results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.0%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+2.1%

Avg return

30 days after

45%

33 / 73 earnings

Positive

+11.2%

Q1 2019

Best reaction

-9.9%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.3%-0.0%-2.2%
Q4 2025+7.4%+8.2%+5.0%
Q3 2025-3.0%-4.3%-1.5%
Q2 2025-0.3%+2.1%+2.2%
Q1 2025+6.8%+7.4%+4.8%
Q4 2024+5.6%+5.1%+11.2%
Q3 2024+6.6%+5.2%+11.2%
Q2 2024-2.3%-1.2%+3.7%
Q1 2024+5.7%+3.2%+7.6%
Q4 2023-2.7%-1.7%-2.9%
Q3 2023+3.3%+5.1%+11.8%
Q2 2023-7.3%-6.7%-8.6%
Q1 2023-5.5%-5.9%-8.9%
Q4 2022-3.9%-1.8%-5.3%
Q3 2022+8.0%+13.7%+15.6%
Q2 2022-2.8%-1.2%+0.5%
Q1 2022-0.9%-2.7%+1.9%
Q4 2021-1.4%-1.0%+1.3%
Q3 2021-0.2%-0.9%+1.1%
Q2 2021+2.7%+3.1%+11.9%
Q1 2021+0.9%+1.8%+1.0%
Q4 2020-4.0%-4.0%-7.0%
Q3 2020+3.5%+3.5%+1.6%
Q2 2020-3.7%-4.9%-9.2%
Q1 2020+6.6%+22.8%+19.4%
Q4 2019+0.0%+0.5%-4.2%
Q3 2019+0.6%-1.6%+2.5%
Q2 2019+5.4%+3.3%+4.6%
Q1 2019+11.2%+11.9%+14.6%
Q4 2018-2.3%-2.0%-1.6%
Q3 2018-9.9%-9.9%-8.2%
Q2 2018-6.3%-7.1%-3.6%
Q1 2018-2.6%-1.0%+1.3%
Q4 2017-2.6%-4.4%-4.1%
Q3 2017+3.3%+3.5%+1.1%
Q2 2017-1.1%+0.1%-2.6%
Q1 2017+5.3%+7.9%+7.9%
Q4 2016+0.9%+0.0%+5.9%
Q3 2016+0.9%+0.2%+3.1%
Q2 2016+1.7%+1.6%+1.6%
Q1 2016+0.8%
Q4 2015-0.1%
Q3 2015-0.3%
Q2 2015+1.2%
Q1 2015-0.6%
Q4 2014+0.7%
Q3 2014+4.2%
Q2 2014+1.4%
Q1 2014-4.2%
Q4 2013-2.5%
Q3 2013-1.4%
Q2 2013-1.3%
Q1 2013-4.4%
Q4 2012-5.5%
Q3 2012-4.5%
Q2 2012-6.8%
Q1 2012-2.4%
Q4 2010+1.0%
Q4 2011+1.0%
Q3 2011+0.4%
Q2 2011-2.1%
Q1 2011+0.2%
Q3 2010+0.1%
Q2 2010+1.7%
Q1 2010-2.6%
Q1 2009-2.6%
Q4 2007+1.8%
Q4 2009+1.8%
Q3 2009-0.1%
Q3 2008-0.1%
Q2 2009-0.6%
Q4 2008-0.6%
Q2 2008-0.6%

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