Quest Diagnostics Inc.’s (DGX) third-quarter revenue growth can be attributed to the strong momentum in its expanding portfolio of Advanced Services. The company strategically deploys AI and automation to improve its operational quality and efficiency. Its base business volume remains robust, which is highly encouraging. However, the mounting debt burden on DGX’s balance sheet could pose challenges for its operations.In the past year, this Zacks Rank #2 (Buy) company’s shares have risen 12.7% compared with ...

Quest Diagnostics (NYSE: DGX ) is a provider of medical diagnostic services to markets across the world. Operations are focused on North America, where DGX has more than 2,000 locations. DGX has extensive coverage over the USBuildingBenjamins is a free stock picking and market commentary investment newsletter. Building Benjamins is the DBA (doing businesses as) publishing entity for Tradition Investment Management, LLC, a registered investment adviser. Benjamin Halliburton, our founder, also founded Traditi ...

Thank you for reading my research on Seeking Alpha. If you want to learn even more about my method and how I discover these investment opportunities, please check out my subscription marketplace service, Compounding Healthcare , and sign up for a free trial.In my previous Quest Diagnostics (NYSE: DGX ) article , I analyzed the company’s Q2 2024 earnings report, which produced a beat on EPS and revenue. The company did report that their base business revenue grew almostHe is the leader of the investing group ...

Revenue Performance - Net revenues for Q3 2024 increased to $2.488 billion, up from $2.295 billion in Q3 2023[123] - DIS revenues grew to $2.427 billion in Q3 2024, compared to $2.228 billion in Q3 2023[123] - Revenue per requisition increased by 3.3% in Q3 2024, reversing a 7.2% decline in Q3 2023[123] - Requisition volume rose by 5.5% in Q3 2024, compared to a 0.5% decline in Q3 2023[123] - DS revenues decreased to $61 million in Q3 2024 from $67 million in Q3 2023[123] Net Income - Net income attributable to Quest Diagnostics was $226 million in Q3 2024, slightly up from $225 million in Q3 2023[123] Acquisitions - The company completed the acquisition of LifeLabs for approximately USD $1 billion in August 2024[126] - Quest Diagnostics acquired select assets of PathAI Diagnostics for $100 million in June 2024[125] Cost Savings and Productivity - The Invigorate program aims to deliver 3% annual cost savings and productivity improvements[130] Restructuring and Integration Costs - The company incurred $45 million in pre-tax charges for restructuring and integration activities in the first nine months of 2024[131]

Investors looking for stocks in the Medical - Outpatient and Home Healthcare sector might want to consider either Quest Diagnostics (DGX) or The Pennant Group, Inc. (PNTG) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive ...

Quest Diagnostics Incorporated (NYSE:DGX) Q3 2024 Earnings Conference Call October 22, 2023 8:30 AM ET Company Participants Jim Davis - President, Chief Executive Officer Sam Samad - Executive Vice President, Chief Financial Officer Shawn Bevec - Vice President, Investor Relations Conference Call Participants Ann Hynes - Mizuho Securities Michael Cherny - Leerink Partners Patrick Donnelly - Citi Pito Chickering - Deutsche Bank Meghan Holtz - Jefferies David Westenberg - Piper Sandler Jack Meehan - Nephron ...

Quest Diagnostics Inc DGX posted third-quarter adjusted earnings per share of $2.30, beating the consensus of $2.26.Sales increased 8.5% year-over-year to $2.49 billion, beating the consensus of $2.42 billion.Quest Diagnostics saw total revenue growth of 8.5%, including 4.2% organic growth, said Quest Diagnostics CEO Jim Davis. “Our performance was driven by new customer wins and expanded business with physicians and hospitals, as well as recent acquisitions, including LifeLabs,” he added. “We are now on tr ...

Quest Diagnostics Incorporated’s (DGX) third-quarter 2024 adjusted earnings per share (EPS) of $2.30 beat the Zacks Consensus Estimate by 1.8%. The metric also exceeded the year-ago adjusted figure by 3.6%.Certain one-time expenses, like the ones related to amortization expenses, certain restructuring and integration charges, other expenses and excess tax benefits associated with stock-based compensations, were excluded from the quarter’s adjusted figures.GAAP earnings came in at $1.99 per share, up 1.5% fr ...

Quest Diagnostics (DGX) came out with quarterly earnings of $2.30 per share, beating the Zacks Consensus Estimate of $2.26 per share. This compares to earnings of $2.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.77%. A quarter ago, it was expected that this medical laboratory operator would post earnings of $2.31 per share when it actually produced earnings of $2.35, delivering a surprise of 1.73%.Over the last four qua ...

Revenue and Earnings Performance - Third quarter revenues of $2.49 billion, up 8.5% from 2023[1] - Third quarter reported diluted EPS of $1.99, up 1.5% from 2023; adjusted diluted EPS of $2.30, up 3.6% from 2023[1] - Full year 2024 revenues expected to be between $9.80 billion and $9.85 billion; reported diluted EPS expected to be between $7.60 and $7.70; adjusted diluted EPS expected to be between $8.85 and $8.95[1] - Diagnostic Information Services revenues of $2.427 billion, up 9.0% from 2023[2] - Revenue per requisition increased by 3.3% and requisition volume increased by 5.5% in the third quarter[2] - Adjusted operating income increased by 1.3% to $385 million in the third quarter[2] - Adjusted net income attributable to Quest Diagnostics increased by 3.1% to $262 million in the third quarter[2] - Net income attributable to Quest Diagnostics was $649 million for the nine months ended September 2024, slightly down from $662 million in 2023[14] - Diluted earnings per share (EPS) for the nine months ended September 2024 was $5.74, compared to $5.79 in 2023[14] - Adjusted operating income for the nine months ended September 2024 was $1,132 million, representing 15.6% of net revenues[17] - Adjusted diluted EPS for the nine months ended September 2024 was $6.70, up from $5.79 in 2023[17] - Operating income for the nine months ended September 30, 2023, was $995 million, representing 14.3% of net revenues[19] - Adjusted operating income for the same period was $1,119 million, or 16.1% of net revenues[19] Cash Flow and Financial Position - Cash provided by operations increased by 72.5% to $356 million in the third quarter[2] - Net cash provided by operating activities was $870 million for the nine months ended September 2024, compared to $745 million in the same period in 2023[13] - Cash and cash equivalents increased to $764 million in September 2024 from $686 million in December 2023[11] - Long-term debt rose to $5,648 million in September 2024 from $4,410 million in December 2023[11] - Business acquisitions, net of cash acquired, totaled $1,781 million for the nine months ended September 2024[13] - Capital expenditures were $302 million for the nine months ended September 2024, down from $336 million in 2023[13] Acquisitions and Growth - The company has completed eight acquisitions by year-end, contributing to revenue growth and profitability[2] - Total assets increased to $16,095 million in September 2024 from $14,022 million in December 2023, reflecting growth in goodwill and intangible assets[11] - Pre-tax losses of $13 million are expected in 2024 due to the increase in fair value of contingent consideration from previous acquisitions[24] - Pre-tax losses of $11 million are anticipated in 2024 from changes in the carrying value of strategic investments[24] - A non-recurring pre-tax gain of $8 million is expected in 2024 from a foreign exchange forward contract related to an acquisition[25] Restructuring and Integration - Restructuring and integration charges for the nine months ended September 30, 2023, totaled $32 million, with a pre-tax impact of $45 million[21] - Estimated pre-tax restructuring and integration charges for 2024 are $50 million, primarily related to workforce reductions[24] - Estimated pre-tax amortization expenses for 2024 are $129 million[24] - Amortization expense for the nine months ended September 30, 2023, was $81 million[19] External Factors Impact - The company expects Hurricane Milton to negatively impact net revenues by approximately $15 million and EPS by approximately 8 cents in the fourth quarter[3]