NYSE$DGX

Quest Diagnostics Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported a decrease in revenue and EPS compared to the previous year, but base business revenues grew. The company provided full year 2022 guidance and increased its quarterly dividend.

Quest Diagnostics reported Q4 2021 financial results, with revenues of $2.74 billion, a decrease of 8.6% compared to Q4 2020. Diluted EPS was $3.12, down 25.9% from 2020, and adjusted diluted EPS was $3.33, down 25.7% from 2020. The company provided full year 2022 guidance and increased its quarterly dividend by 6.5% to $0.66 per share.

  • Fourth quarter revenues decreased by 8.6% versus 2020.
  • Fourth quarter diluted EPS decreased by 25.9% from 2020; and adjusted diluted EPS decreased by 25.7% from 2020.
  • Base business revenues grew more than 19 percent year over year, achieving record levels.
  • Full year 2022 reported diluted EPS is expected to be between $7.63 and $8.33, and adjusted diluted EPS is expected to be between $8.65 and $9.35.

Headline financials

Total Revenue

$2.74B

Previous: $3B-8.6%
EPS (adj)

$3.33

Previous: $4.48-25.7%
Requisition volume change

1.3%

Previous: 26.8%-95.1%
Organic requisition volume change

0.2%

Previous: 22.3%-99.1%
Capital Expenditures

$144M

Previous: $162M-11.1%
Free Cash Flow

$337M

Previous: $379M-11.1%
Net Income

$390M

Previous: $609M-36.0%
Operating Income

$536M

Previous: $795M-32.6%
Gross Profit

$1.03B

Previous: $1.27B-19.1%
Cash & Equivalents

$872M

Previous: $1.16B-24.7%
Total Assets

$13.6B

Previous: $14B-3.0%
Stock-Based Comp

$19M

Previous: $34M-44.1%

Revenue & EPS history

Quest Diagnostics · Revenue · Quarterly

$2.74B

Q4 2021-8.6%vs Q4 2020
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

We estimate full year 2022 guidance as follows: Net revenues $9.0 billion-$9.5 billion Reported diluted EPS $7.63-$8.33 Adjusted diluted EPS $8.65-$9.35 Cash provided by operations At least $1.6 billion Capital expenditures Approximately $400 million

Tailwinds

  • Base business revenues $8.3 billion-$8.5 billion
  • Base business revenues increase 3.5%-6.0%
  • Adjusted diluted EPS $8.65 - $9.35
  • Cash provided by operations At least $1.6 billion
  • Capital expenditures Approximately $400 million

Headwinds

  • Net revenues $9.0 billion-$9.5 billion
  • Net revenues decrease (16.6)%-(11.9)%
  • COVID-19 testing revenues $0.7 billion-$1.0 billion
  • COVID-19 testing revenues decrease (74.7)%-(63.9)%
  • Reported diluted EPS $7.63-$8.33

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 Q4 2021

Historical avgQ4 2021

+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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