NYSE$DGX

Quest Diagnostics Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Quest Diagnostics' Q3 2023 financial performance declined compared to the previous year, but base business revenues saw growth.

Quest Diagnostics reported a decrease in revenue and EPS for Q3 2023 compared to Q3 2022. Total revenues were $2.30 billion, a 7.7% decrease, while reported EPS was $1.96, a 9.7% decrease. However, base business revenues grew by 4.6%. The company has updated its full-year 2023 guidance, expecting revenues between $9.19 billion and $9.24 billion and adjusted diluted EPS between $8.65 and $8.75.

  • Third quarter revenues decreased by 7.7% to $2.30 billion compared to 2022.
  • Reported diluted EPS for the third quarter decreased by 9.7% to $1.96 compared to 2022.
  • Base business revenues for the third quarter increased by 4.6% from 2022.
  • Full year 2023 revenue guidance updated to $9.19 billion - $9.24 billion; adjusted diluted EPS guidance updated to $8.65 - $8.75.

Headline financials

Total Revenue

$2.3B

Previous: $2.49B-7.7%
EPS (adj)

$2.22

Previous: $2.36-5.9%
Revenue per requisition growth

-7.2%

Previous: -5.1%-41.2%
Requisition volume change

-0.5%

Previous: -6.2%+91.9%
Organic requisition volume change

-1.0%

Previous: -6.4%+84.4%
Capital Expenditures

-$336M

Previous: -$257M-30.7%
Free Cash Flow

-$111M

Previous: -$1M-11000.0%
Net Income

$225M

Previous: $256M-12.1%
Operating Income

$342M

Previous: $392M-12.8%
Gross Profit

$754M

Previous: $868M-13.1%
Cash & Equivalents

$143M

Previous: $700M-79.6%
Total Assets

$13.5B

Previous: $13.2B+2.0%
Stock-Based Comp

$18M

Previous: $18M+0.0%

Revenue & EPS history

Quest Diagnostics · Revenue · Quarterly

$2.3B

Q3 2023-7.7%vs Q3 2022
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 has updated its Full Year 2023 guidance with revenue expected to be between $9.19 billion and $9.24 billion and adjusted diluted EPS expected to be between $8.65 and $8.75.

Tailwinds

  • Net revenues between $9.19 billion and $9.24 billion
  • Base business revenues between $8.99 billion and $9.04 billion
  • Base business revenues increase 6.7% to 7.3%
  • COVID-19 testing revenues approximately $200 million
  • Adjusted diluted EPS between $8.65 and $8.75

Headwinds

  • Net revenues decrease (7.0)% to (6.5)%
  • COVID-19 testing revenues decrease (86.2)%
  • Reported diluted EPS $7.61 to $7.71
  • Cash provided by operations Approximately $1.3 billion
  • Capital expenditures Approximately $400 million

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 2023

Historical avgQ3 2023

+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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