Quest Diagnostics(US:DGX) ZACKS·2025-07-22 13:40Core Insights - Quest Diagnostics Inc. reported second-quarter 2025 adjusted earnings per share (EPS) of $2.62, exceeding the Zacks Consensus Estimate by 1.9% and up 11.5% year-over-year [1][8] - The company’s revenues for the second quarter rose 15.2% year-over-year to $2.76 billion, surpassing the Zacks Consensus Estimate by 1.5% [3][8] - Quest Diagnostics updated its full-year 2025 revenue outlook to a range of $10.80 billion to $10.92 billion, indicating a year-over-year increase of 9.4% to 10.6% [7][8] Financial Performance - Adjusted EPS for the quarter was $2.62, while GAAP earnings were $2.47 per share, reflecting a 21.7% increase from the previous year [2][8] - Revenues from Diagnostic Information Services increased by 15.7% year-over-year to $2.70 billion, exceeding projections [3] - The cost of services was $1.82 billion, up 14.1% year-over-year, with gross profit at $943 million, up 17.3% [5] Volume and Margin Analysis - Volumes measured by the number of requisitions increased by 16.3% year-over-year, although revenue per requisition decreased by 0.4% [4] - The gross margin improved to 34.2%, up 61 basis points year-over-year, while the adjusted operating margin expanded by 37 basis points to 14.6% [5] Cash Position and Dividend Growth - At the end of Q2 2025, the company had cash and cash equivalents of $319 million, up from $188 million at the end of Q1 [6] - Cumulative net cash provided by operating activities was $858 million, compared to $514 million at the same time last year [6] - The company has a five-year annualized dividend growth rate of 7.31% [6] Strategic Outlook - The company’s strong performance is attributed to ongoing strategic execution, demand for clinical solutions, and productivity gains from automation and digital technologies [9] - The revised revenue and EPS outlook for 2025 reflects continued momentum and growth potential [7][9]