NYSE$DGX

Quest Diagnostics Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a decrease in revenue and EPS due to decline in COVID-19 testing revenues, while base business revenues increased.

Quest Diagnostics reported a decrease in revenue and EPS for Q3 2022 compared to Q3 2021. The decrease was primarily due to a decline in COVID-19 testing revenues. However, the base business revenues increased by 5.1%. The company has raised its outlook for the remainder of 2022 based on this performance.

  • Third quarter revenues were $2.49 billion, a 10.4% decrease from 2021.
  • Reported diluted EPS was $2.17, a 46.0% decrease from 2021.
  • Base business revenues were $2.17 billion, a 5.1% increase from 2021.
  • Full year 2022 reported diluted EPS is now expected to be between $8.52 and $8.72.

Headline financials

Total Revenue

$2.49B

Previous: $2.77B-10.4%
EPS (adj)

$2.36

Previous: $3.96-40.4%
Revenue per requisition growth

-5.1%

Previous: -5.4%+5.6%
Requisition volume change

-6.2%

Previous: 5.3%-217.0%
Organic requisition volume change

-6.4%

Previous: 3.2%-300.0%
Capital Expenditures

-$257M

Previous: -$259M+0.8%
Free Cash Flow

-$1M

Previous: $246M-100.4%
Net Income

$256M

Previous: $505M-49.3%
Operating Income

$392M

Previous: $652M-39.9%
Gross Profit

$868M

Previous: $1.1B-21.4%
Cash & Equivalents

$700M

Previous: $987M-29.1%
Total Assets

$13.2B

Previous: $13.6B-2.6%
Stock-Based Comp

$18M

Previous: $21M-14.3%

Revenue & EPS history

Quest Diagnostics · Revenue · Quarterly

$2.49B

Q3 2022-10.4%vs Q3 2021
Beat estimate in 12 of 15 quarters(80%)
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.

Tailwinds

  • Net revenues between $9.72 billion and $9.86 billion.
  • Base business revenues between $8.38 billion and $8.45 billion.
  • Base business revenues increase 4.5% to 5.4%.
  • COVID-19 testing revenues between $1.34 billion and $1.41 billion.
  • Adjusted diluted EPS between $9.75 and $9.95.

Headwinds

  • Net revenues decrease (9.9)% to (8.6)%.
  • COVID-19 testing revenues decrease (51.6)% to (49.1)%.
  • Capital expenditures 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 our 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 Q3 2022

Historical avgQ3 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