NYSE$DGX

Quest Diagnostics Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Revenue decreased by 3.8% year over year, with diluted EPS down 60.5% and adjusted diluted EPS down 25.8%.

Quest Diagnostics reported a decrease in revenue and earnings per share for the second quarter of 2022 compared to the previous year, while base business revenues experienced growth. The company has raised its full year guidance based on its performance in the quarter and expectations for the remainder of 2022.

  • Second quarter revenues were $2.45 billion, a 3.8% decrease from 2021.
  • Reported diluted EPS for the second quarter was $1.96, a 60.5% decrease from 2021.
  • Adjusted diluted EPS for the second quarter was $2.36, a 25.8% decrease from 2021.
  • Second quarter base business revenues were $2.10 billion, a 2.9% increase from 2021.

Headline financials

Total Revenue

$2.45B

Previous: $2.55B-3.8%
EPS (adj)

$2.36

Previous: $3.18-25.8%
Revenue per requisition growth

-2.6%

Previous: -3.6%+27.8%
Requisition volume change

-1.4%

Previous: 45.2%-103.1%
Organic requisition volume change

-2.4%

Previous: 40.1%-106.0%
Capital Expenditures

-$139M

Previous: -$170M+18.2%
Free Cash Flow

$95M

Previous: $461M-79.4%
Net Income

$234M

Previous: $631M-62.9%
Operating Income

$388M

Previous: $533M-27.2%
Gross Profit

$842M

Previous: $985M-14.5%
Cash & Equivalents

$790M

Previous: $560M+41.1%
Total Assets

$13.3B

Previous: $12.9B+3.5%
Stock-Based Comp

$19M

Previous: $21M-9.5%

Revenue & EPS history

Quest Diagnostics · Revenue · Quarterly

$2.45B

Q2 2022-3.8%vs Q2 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

Quest Diagnostics raises its Full Year 2022 guidance.

Tailwinds

  • Net revenues are now expected to be between $9.50 billion and $9.75 billion.
  • Base business revenues are expected to be between $8.35 billion and $8.45 billion.
  • COVID-19 testing revenues are expected to be between $1.15 billion and $1.30 billion.
  • Reported diluted EPS is now expected to be between $8.24 and $8.64.
  • Adjusted diluted EPS is expected to be between $9.55 and $9.95.

Headwinds

  • Net revenues are expected to decrease by (11.9)% to (9.6)%.
  • COVID-19 testing revenues are expected to decrease by (58.5)% to (53.1)%.
  • Capital expenditures are expected to be approximately $400 million.
  • Further impacts to earnings related to special items may occur throughout 2022.
  • The amount of ETB is dependent upon employee stock option exercises and the company's stock price, both of which are difficult to predict.

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 2022

Historical avgQ2 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro