Quest Diagnostics(DGX)2024-10-22 10:48Revenue 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]