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Quest Diagnostics(DGX) - 2024 Q3 - Quarterly Results
DGXQuest Diagnostics(DGX)2024-10-22 10:48

Revenue and Earnings Performance - Third quarter revenues of 2.49billion,up8.52.49 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,up3.62.30, up 3.6% from 2023[1] - Full year 2024 revenues expected to be between 9.80 billion and 9.85billion;reporteddilutedEPSexpectedtobebetween9.85 billion; reported diluted EPS expected to be between 7.60 and 7.70;adjusteddilutedEPSexpectedtobebetween7.70; adjusted diluted EPS expected to be between 8.85 and 8.95[1]−DiagnosticInformationServicesrevenuesof8.95[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 385millioninthethirdquarter[2]−AdjustednetincomeattributabletoQuestDiagnosticsincreasedby3.1385 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 649millionfortheninemonthsendedSeptember2024,slightlydownfrom649 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,comparedto5.74, compared to 5.79 in 2023[14] - Adjusted operating income for the nine months ended September 2024 was 1,132million,representing15.61,132 million, representing 15.6% of net revenues[17] - Adjusted diluted EPS for the nine months ended September 2024 was 6.70, up from 5.79in2023[17]−OperatingincomefortheninemonthsendedSeptember30,2023,was5.79 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 1,119million,or16.11,119 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 870millionfortheninemonthsendedSeptember2024,comparedto870 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 764millioninSeptember2024from764 million in September 2024 from 686 million in December 2023[11] - Long-term debt rose to 5,648millioninSeptember2024from5,648 million in September 2024 from 4,410 million in December 2023[11] - Business acquisitions, net of cash acquired, totaled 1,781millionfortheninemonthsendedSeptember2024[13]−Capitalexpenditureswere1,781 million for the nine months ended September 2024[13] - Capital expenditures were 302 million for the nine months ended September 2024, down from 336millionin2023[13]AcquisitionsandGrowth−Thecompanyhascompletedeightacquisitionsbyyear−end,contributingtorevenuegrowthandprofitability[2]−Totalassetsincreasedto336 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 14,022millioninDecember2023,reflectinggrowthingoodwillandintangibleassets[11]−Pre−taxlossesof14,022 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 11millionareanticipatedin2024fromchangesinthecarryingvalueofstrategicinvestments[24]−Anon−recurringpre−taxgainof11 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 32million,withapre−taximpactof32 million, with a pre-tax impact of 45 million[21] - Estimated pre-tax restructuring and integration charges for 2024 are 50million,primarilyrelatedtoworkforcereductions[24]−Estimatedpre−taxamortizationexpensesfor2024are50 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 81million[19]ExternalFactorsImpact−ThecompanyexpectsHurricaneMiltontonegativelyimpactnetrevenuesbyapproximately81 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]