Here's How Quest Diagnostics Is Placed Ahead of Q3 Earnings

Core Insights - Quest Diagnostics (DGX) is scheduled to release its third-quarter 2025 results on October 21, before market opening, with adjusted EPS of $2.62 in the last quarter, exceeding the Zacks Consensus Estimate by 1.95% [1] - The Zacks Consensus Estimate for Q3 2025 revenues is $2.72 billion, reflecting a 9.3% increase year-over-year, while EPS is projected to rise 9.1% to $2.51 [2] Revenue and Earnings Estimates - The revenue estimate for Q3 2025 indicates a significant growth trajectory, with a 9.3% increase from the previous year [2] - The EPS estimate suggests a 9.1% rise, indicating strong earnings potential for the quarter [2] Performance Trends - Earnings estimates for Q3 have remained stable over the past 30 days, suggesting confidence in the company's performance [3] - The company has consistently surpassed earnings estimates in the last four quarters, with an average surprise of 2.09% [1] Factors Influencing Q3 Results - The core Diagnostics Information Services (DIS) business is expected to show strong revenue growth, driven by physician and hospital channels [4] - Increased test orders per requisition and demand for clinical solutions are anticipated to sustain revenue momentum [4] - The partnership with Fresenius Medical Care is likely to enhance revenues from physician channels, supporting over 200,000 kidney dialysis patients [5] M&A Contributions - M&A activities contributed 10% growth in the previous quarter, with expectations for continued positive momentum in Q3 [6] - The acquisition of clinical testing assets from Fresenius Medical Care is projected to add a 7.1% contribution to DIS revenues [6] Strategic Developments - Collaborative Lab Solutions and strategic acquisitions are expected to drive growth in the hospital channel [7] - The enhanced questhealth.com platform and partnerships with consumer brands are likely to complement revenue growth [8] Advanced Diagnostics Performance - Robust revenues are anticipated in Advanced Diagnostics, particularly in Advanced Cardiometabolic and Brain Health areas [9] - The launch of a molecular test for diagnosing Oropouche virus is expected to positively impact revenues [10] Operational Excellence - The company is likely to continue leveraging automation, robotics, and AI to enhance operational efficiency and productivity [11] - Projected operating income (non-GAAP) is expected to increase by 21.4% year-over-year in Q3 [11] Earnings ESP and Zacks Rank - Quest Diagnostics has an Earnings ESP of +0.49%, indicating a higher chance of beating estimates [12] - The company currently holds a Zacks Rank of 3, suggesting a stable outlook [12]