Quest Diagnostics Earnings Cheat Sheet: Net Income Drops As Revenues Rise 1%

S&P 500 (NYSE:SPY) component Quest Diagnostics Incorporated (NYSE:DGX) reported a lower net income in the first quarter compared with a year earlier, falling below analysts’ estimates. Quest Diagnostics, Inc. provides diagnostic testing, information and services to patients, physicians and others.

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Quest Diagnostics Incorporated Earnings Cheat Sheet for the First Quarter

Results: Net income for the medical laboratories and research company fell to $140.8 million (86 cents/share) vs. $162.4 million (89 cents/share) a year earlier. A decline of 13.3% from the year earlier quarter.

Revenue: Rose 0.9% to $1.82 billion YoY.

Actual vs. Wall St. Expectations: DGX (NYSE:DGX) fell short of the mean analyst estimate of $1.01/share. Estimates ranged from 99 cents per share to $1.05 per share.

Quoting Management: Surya N. Mohapatra, Ph.D., Chairman and Chief Executive Officer, said: “This was an important quarter for Quest Diagnostics. We completed our acquisition of Athena Diagnostics, and established the leading position in the neurology diagnostics market. We also announced our proposed acquisition of Celera to further strengthen our leadership position in cardiovascular testing as well as molecular diagnostics products and discovery. These transactions position us well for the future.”

Key Stats: From the fourth quarter of the last fiscal year, the company’s current liabilities rose to $1.53 billion from $1.21 billion.

A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the third quarter of the last fiscal year, which saw a 1.7% decrease.

The company has now seen net income fall in each of the last two quarters. In the fourth quarter of the last fiscal year, net income fell 8.7% from the year earlier quarter.

Competitors to Watch: Bio-Reference Laboratories Inc. (NASDAQ:BRLI), Clarient (NASDAQ:CLRT), Psychemedics (NASDAQ:PMD), MEDTOX (NASDAQ:MTOX), Celera (NASDAQ:CRA), Enzo Biochem (NYSE:ENZ), Orchid Cellmark (NASDAQ:ORCH), RadNet (NASDAQ:RDNT) and Laboratory Corp. of America Holdings (NYSE:LH).

Today’s Performance: Shares of DGX (NYSE:DGX) are trading at $58.80 per share:

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