July 23 (Reuters) – Quest Diagnostics on Thursday raised its full-year profit forecast, after demand for routine diagnostic testing helped the company beat second-quarter estimates.
Shares of the New Jersey-based company rose about 5% in premarket trading following the results.
Here are the details:
• Demand for the company’s diagnostic testing services was strong across its physician, hospital and consumer channels, Quest said.
• The results were “well above what was widely expected,” Barclays analysts said.
• Industry peer Labcorp also raised its annual revenue and profit forecasts last quarter, after posting quarterly results above expectations as demand for diagnostic testing remained steady.
• Quest Diagnostics reported second-quarter revenue of $3.04 billion, topping analysts’ average estimate of $2.97 billion, according to data compiled by LSEG.
• Adjusted profit was $3.12 per share, above expectations of $2.83 per share.
• Revenue from diagnostic information services, Quest’s largest segment, increased 10.3% to $2.98 billion from a year ago, helped by a 13.1% increase in requisition volumes, including 13.0% organic volume growth.
• Quest also reported double-digit growth in advanced diagnostics businesses, including Alzheimer’s disease blood tests, advanced cardiometabolic tests and liver fibrosis testing.
• The company expects 2026 revenue of $11.95 billion to $12.05 billion, above its prior forecast of $11.78 billion to $11.90 billion and analysts’ estimate of $11.85 billion.
• Quest expects adjusted profit of $11.05 to $11.25 per share in 2026, compared with its previous forecast of $10.63 to $10.83 per share. Analysts expect $10.76 per share.
(Reporting by Sahil Pandey in Bengaluru; Editing by Shreya Biswas)
Comments