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Jun 30, 2021

Quest Diagnostics Q2 2021 Earnings Report

Reported strong financial results driven by a faster than expected recovery in the base business and contributions from new hospital lab management contracts.

Key Takeaways

Quest Diagnostics reported a strong second quarter with revenues of $2.55 billion, a 39.5% increase from 2020. Reported diluted EPS was $4.96, up 264.2% from 2020, and adjusted diluted EPS was $3.18, up 123.9% from 2020. The company also established its full year 2021 outlook.

Second quarter revenues of $2.55 billion, up 39.5% from 2020

Second quarter reported diluted earnings per share (EPS) of $4.96, up 264.2% from 2020; and adjusted diluted EPS of $3.18, up 123.9% from 2020

Second quarter cash provided by operations of $460 million, up 30.1% from 2020

Established full year 2021 outlook

Total Revenue
$2.55B
Previous year: $1.83B
+39.6%
EPS
$3.18
Previous year: $1.42
+123.9%
Revenue per requisition
-3.6%
Requisition volume
45.2%
Previous year: -17.7%
-355.4%
Organic requisition volume
40.1%
Previous year: -18.2%
-320.3%
Gross Profit
$985M
Previous year: $606M
+62.5%
Cash and Equivalents
$560M
Previous year: $988M
-43.3%
Free Cash Flow
$376M
Previous year: $273M
+37.7%
Total Assets
$12.9B
Previous year: $13B
-1.0%

Quest Diagnostics

Quest Diagnostics

Quest Diagnostics Revenue by Segment

Forward Guidance

The company estimates its full year 2021 outlook as follows: Net revenues between $9.54 billion and $9.79 billion, Net revenues increase between 1.1% and 3.7%, Reported diluted EPS between $11.48 and $12.18, Adjusted diluted EPS between $10.65 and $11.35, Cash provided by operations at least $1.9 billion, and Capital expenditures approximately $400 million.

Positive Outlook

  • Net revenues between $9.54 billion and $9.79 billion
  • Net revenues increase between 1.1% and 3.7%
  • Reported diluted EPS between $11.48 and $12.18
  • Adjusted diluted EPS between $10.65 and $11.35
  • Cash provided by operations at least $1.9 billion

Challenges Ahead

  • Capital expenditures approximately $400 million