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Quest Diagnostics Q1 Earnings & Revenues Top Estimates, Stock Up
DGXQuest Diagnostics(DGX) ZACKS·2025-04-22 15:35

Core Viewpoint - Quest Diagnostics Inc. reported strong first-quarter 2025 results, with adjusted earnings per share (EPS) of 2.21,exceedingestimatesandshowingyear−over−yeargrowth[1][2][8]FinancialPerformance−AdjustedEPSof2.21, exceeding estimates and showing year-over-year growth [1][2][8] Financial Performance - Adjusted EPS of 2.21 beat the Zacks Consensus Estimate by 2.8% and increased by 8.3% compared to the previous year [1] - GAAP EPS was 1.94,reflectinga12.81.94, reflecting a 12.8% increase from the same quarter last year [2] - Revenues rose 12.1% year over year to 2.65 billion, surpassing the Zacks Consensus Estimate by 1.5% [3] - Diagnostic Information Services revenues increased by 12.7% year over year to 2.59billion,exceedingprojections[3]−Volumesmeasuredbyrequisitionswereup12.52.59 billion, exceeding projections [3] - Volumes measured by requisitions were up 12.5% year over year, with revenue per requisition increasing by 0.3% [4] Margin and Cost Analysis - Cost of services was 1.79 billion, up 12.2% year over year, while gross profit reached 863million,an11.9863 million, an 11.9% increase [5] - Gross margin stood at 32.5%, nearly unchanged from the previous year [5] - SG&A expenses were 476 million, an 8.1% increase from the first quarter of 2024 [5] - Adjusted operating margin improved by 60 basis points year over year to 14.6% [5] Liquidity and Financial Health - Cash and cash equivalents at the end of Q1 2025 were 188million,downfrom188 million, down from 549 million at the end of Q4 2024 [6] - Cumulative net cash from operating activities was 314million,comparedto314 million, compared to 154 million at the same time last year [6] - The company has a five-year annualized dividend growth rate of 7.17% [6] 2025 Guidance - Full-year 2025 revenue outlook is reaffirmed at 10.70billionto10.70 billion to 10.85 billion, indicating a year-over-year increase of 8.4% to 9.9% [7] - Adjusted EPS guidance remains unchanged at 9.55to9.55 to 9.80, with the Zacks Consensus Estimate at $9.68 [7] Market Reaction and Outlook - Following the earnings report, DGX shares gained nearly 6.7% in pre-market trading [2] - The growth in revenue was attributed to a rebound in demand, contributions from acquisitions, and expanded health plan access [8][9]