Quest Diagnostics Inc. Earnings Cheat Sheet: Profit Goes South

S&P 500 (NYSE:SPY) component Quest Diagnostics Incorporated (NYSE:DGX) reported its results for the third quarter. Quest Diagnostics provides diagnostic testing, information, and services to patients, physicians, and others.

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Quest Diagnostics Incorporated Earnings Cheat Sheet for the Third Quarter

Results: Net income for Quest Diagnostics Incorporated fell to $171.8 million ($1.08 per share) vs. $198.1 million ($1.13 per share) a year earlier. This is a decline of 13.3% from the year earlier quarter.

Revenue: Rose 2.2% to $1.91 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: DGX reported adjusted net income of $1.18 per share. By that measure, the company beat the mean estimate of $1.11 per share. Analysts were expecting revenue of $1.89 billion.

Quoting Management: “During the third quarter, revenues grew 2.2%, adjusted earnings per share increased 4%, and we generated strong cash flow . While there are signs of progress in a number of areas, there is still much work to be done,” said Surya N. Mohapatra, Ph.D., Chairman and CEO. “We remain focused on increasing shareholder value and improving returns on capital. We are taking a series of actions to improve our performance by driving organic growth and significantly reducing our cost structure.”

Key Stats:

Revenue has now gone up for three straight quarters. In the second quarter, revenue rose 1.5% to $1.9 billion while the figure rose 0.9% in the first quarter from the year earlier.

The company beat estimates last quarter after being in line with expectations in the second quarter with net income of $1.12 per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $1.08 per share to $1.06, indicating that analysts are growing pessimistic about the company’s performance next quarter. Over the past sixty days, the average estimate for the fiscal year has reached $4.22 abs per share, a decline from $4.24.

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

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(Source: Xignite Financials)