NYSE$DGX

Quest Diagnostics Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported stronger-than-expected performance due to rapid expansion of COVID-19 testing, which partially offset the decline in base testing volume.

Quest Diagnostics reported a 6.4% decrease in revenue compared to the previous year, but delivered stronger-than-expected performance due to the expansion of COVID-19 testing. The company has reinstated its full year outlook for 2020.

  • Second quarter revenues were $1.83 billion, a decrease of 6.4% from 2019.
  • Second quarter reported diluted EPS was $1.36, down 9.7% from 2019, and adjusted diluted EPS was $1.42, down 17.9% from 2019.
  • Cash provided by operations for the second quarter was $355 million, up 10.4% from 2019.
  • Full year 2020 reported diluted EPS is expected to be between $5.66 and $7.66, and adjusted diluted EPS is expected to be between $6.60 and $8.60.

Headline financials

Total Revenue

$1.83B

Previous: $1.95B-6.5%
EPS (adj)

$1.42

Previous: $1.73-17.9%
Requisition volume change

-17.7%

No prior period
Organic requisition volume change

-18.2%

No prior period
Capital Expenditures

-$165M

Previous: -$132M-25.0%
Free Cash Flow

$20M

Previous: $94M-78.7%
Net Income

$185M

Previous: $226M-18.1%
Operating Income

$283M

Previous: $307M-7.8%
Gross Profit

$606M

Previous: $688M-11.9%
Cash & Equivalents

$988M

Previous: $273M+261.9%
Total Assets

$13B

Previous: $11.8B+10.5%
Stock-Based Comp

$17M

Previous: $15M+13.3%

Revenue & EPS history

Quest Diagnostics · Revenue · Quarterly

$1.83B

Q2 2020-6.5%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

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

  • Diagnostic information services
    $2.38B

Forward guidance

The company reinstated its financial outlook for full year 2020. Net revenues are expected to be between $8.0 billion and $8.6 billion. Reported diluted EPS is expected to be between $5.66 and $7.66 and adjusted diluted EPS to be between $6.60 and $8.60. Cash provided by operations is expected to be at least $1.25 billion and capital expenditures between $375 million and $400 million.

Tailwinds

  • Net revenues are expected to increase between 3.5% and 11.3%.
  • Cash provided by operations is expected to be at least $1.25 billion.
  • Reinstated financial outlook for the full year 2020.
  • Reported diluted EPS expected to be between $5.66 and $7.66
  • Adjusted diluted EPS expected to be between $6.60 and $8.60

Headwinds

  • Outlook ranges reflect uncertainties related to the impact of the COVID-19 pandemic.
  • Special items may impact earnings throughout 2020.
  • Amount of ETB is dependent upon employee stock option exercises and the company's stock price, which are difficult to predict.
  • Company has temporarily suspended additional share repurchases through the end of 2020
  • Full year outlook reflects a number of assumptions that are subject to change

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 Q2 2020

Historical avgQ2 2020

+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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