NYSE$DGX

Quest Diagnostics Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Delivered a strong third quarter with revenue and EPS growth, driven by new customer wins, expanded business, and recent acquisitions.

Quest Diagnostics reported a strong third quarter with an 8.5% increase in total revenue, including 4.2% organic growth. The company's performance was driven by new customer wins, expanded business with physicians and hospitals, and recent acquisitions. Due to contributions from recent acquisitions, the company has increased its 2024 revenue guidance and has maintained the midpoint of its adjusted EPS guidance despite the impact of Hurricane Milton in the fourth quarter.

  • Third quarter revenues increased by 8.5% compared to 2023.
  • Reported diluted earnings per share increased by 1.5% from 2023.
  • Adjusted diluted earnings per share increased by 3.6% from 2023.
  • Full year 2024 revenues are now expected to be between $9.80 billion and $9.85 billion.

Headline financials

Total Revenue

$2.49B

Previous: $2.3B+8.4%
EPS

$1.99

Previous: $2.22-10.4%
Revenue per requisition growth

0.2%

Previous: -7.2%+102.8%
Requisition volume change

13.8%

Previous: -0.5%+2860.0%
Organic requisition volume change

1.8%

Previous: -1.0%+280.0%
Operating income as % of net revenues

13.3%

No prior period
Adjusted operating income as % of net revenues

15.5%

No prior period
Capital Expenditures

-$302M

Previous: -$336M+10.1%
Free Cash Flow

-$76M

Previous: -$111M+31.5%
Net Income

$226M

Previous: $225M+0.4%
Operating Income

$330M

Previous: $342M-3.5%
Gross Profit

$811M

Previous: $754M+7.6%
Cash & Equivalents

$764M

Previous: $143M+434.3%
Total Assets

$16.1B

Previous: $13.5B+19.4%
Stock-Based Comp

$19M

Previous: $18M+5.6%

Revenue & EPS history

Quest Diagnostics · Revenue · Quarterly

$2.49B

Q3 2024+8.4%vs Q3 2023
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 updates its full year 2024 guidance. The updated guidance reflects the impact of recent acquisitions including LifeLabs as well as the impact from Hurricane Milton in the fourth quarter. The company projects the disruption from Hurricane Milton to negatively impact net revenues by approximately $15 million and EPS by approximately 8 cents in the fourth quarter.

Tailwinds

  • Net revenues are expected to be between $9.80 billion and $9.85 billion.
  • Net revenues increase between 5.9% and 6.5%.
  • Reported diluted EPS is expected to be between $7.60 and $7.70.
  • Adjusted diluted EPS is expected to be between $8.85 and $8.95.
  • Cash provided by operations approximately $1.3 billion

Headwinds

  • Hurricane Milton is projected to negatively impact net revenues by approximately $15 million in the fourth quarter.
  • Hurricane Milton is projected to negatively impact EPS by approximately 8 cents in the fourth quarter.
  • Restructuring and integration charges of $0.34
  • Amortization expense of $0.85
  • Other charges of $0.12

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 2024

Historical avgQ3 2024

+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