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Jun 30, 2020
Quest Diagnostics Q2 2020 Earnings Report
Reported stronger-than-expected performance due to rapid expansion of COVID-19 testing, which partially offset the decline in base testing volume.
Key Takeaways
Quest Diagnostics reported a 6.4% decrease in revenue compared to the previous year, but delivered stronger-than-expected performance due to the expansion of COVID-19 testing. The company has reinstated its full year outlook for 2020.
Second quarter revenues were $1.83 billion, a decrease of 6.4% from 2019.
Second quarter reported diluted EPS was $1.36, down 9.7% from 2019, and adjusted diluted EPS was $1.42, down 17.9% from 2019.
Cash provided by operations for the second quarter was $355 million, up 10.4% from 2019.
Full year 2020 reported diluted EPS is expected to be between $5.66 and $7.66, and adjusted diluted EPS is expected to be between $6.60 and $8.60.
Forward Guidance
The company reinstated its financial outlook for full year 2020. Net revenues are expected to be between $8.0 billion and $8.6 billion. Reported diluted EPS is expected to be between $5.66 and $7.66 and adjusted diluted EPS to be between $6.60 and $8.60. Cash provided by operations is expected to be at least $1.25 billion and capital expenditures between $375 million and $400 million.
Positive Outlook
- Net revenues are expected to increase between 3.5% and 11.3%.
- Cash provided by operations is expected to be at least $1.25 billion.
- Reinstated financial outlook for the full year 2020.
- Reported diluted EPS expected to be between $5.66 and $7.66
- Adjusted diluted EPS expected to be between $6.60 and $8.60
Challenges Ahead
- Outlook ranges reflect uncertainties related to the impact of the COVID-19 pandemic.
- Special items may impact earnings throughout 2020.
- Amount of ETB is dependent upon employee stock option exercises and the company's stock price, which are difficult to predict.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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