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Mar 31, 2023
Quest Diagnostics Q1 2023 Earnings Report
Reported a decrease in revenue and EPS due to decline in COVID-19 testing revenues, offset by growth in the base business.
Key Takeaways
Quest Diagnostics reported a decrease in first quarter revenue by 10.7% compared to 2022, with revenues of $2.33 billion. The decline was driven by an 80.2% decrease in COVID-19 testing revenues, while the base business revenues increased by 10.0%. Reported diluted EPS decreased by 39.0% to $1.78, and adjusted diluted EPS decreased by 36.6% to $2.04.
First quarter revenues were $2.33 billion, a 10.7% decrease from 2022.
Reported diluted EPS was $1.78, a 39.0% decrease from 2022; adjusted diluted EPS was $2.04, a 36.6% decrease from 2022.
Base business revenues for the first quarter were $2.21 billion, a 10.0% increase from 2022.
Full year 2023 revenue is now expected to be between $8.93 billion and $9.08 billion.
Forward Guidance
The company updated its Full Year 2023 guidance. Net revenues are expected to be between $8.93 billion and $9.08 billion. The reported diluted EPS is expected to be between $7.52 and $8.02, and the adjusted diluted EPS is expected to be between $8.45 and $8.95.
Positive Outlook
- Base business revenues are expected to increase by 4.2% to 5.4%.
- Full year 2023 revenues now expected to be between $8.93 billion and $9.08 billion.
- Reported diluted EPS now expected to be between $7.52 and $8.02.
- Adjusted diluted EPS expected to be between $8.45 and $8.95.
- Cash provided by operations at least $1.3 billion.
Challenges Ahead
- Net revenues decrease (9.6)% to (8.1)%.
- COVID-19 testing revenues decrease (89.7)% to (86.2)%.
- Restructuring and integration charges $0.30.
- Amortization expense $0.76.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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