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Jun 30, 2023
Quest Diagnostics Q2 2023 Earnings Report
Reported a decrease in revenue but an increase in EPS, driven by strong base business performance and collaborations with health partners.
Key Takeaways
Quest Diagnostics reported second-quarter revenues of $2.34 billion, a 4.7% decrease year-over-year. However, the company saw a 4.6% increase in reported diluted EPS to $2.05. The base business revenues grew by 9.5% compared to the previous year. The company has updated its full-year 2023 revenue guidance to between $9.12 billion and $9.22 billion and adjusted diluted EPS to between $8.50 and $8.90.
Second quarter revenues were $2.34 billion, down 4.7% from 2022.
Reported diluted EPS was $2.05, up 4.6% from 2022, while adjusted diluted EPS was $2.30, down 2.5% from 2022.
Base business revenues increased by 9.5% year-over-year, reaching $2.30 billion.
Full-year 2023 revenue guidance is now expected to be between $9.12 billion and $9.22 billion.
Quest Diagnostics
Quest Diagnostics
Forward Guidance
Quest Diagnostics updated its Full Year 2023 guidance, expecting revenues between $9.12 billion and $9.22 billion and adjusted diluted EPS between $8.50 and $8.90.
Positive Outlook
- Full year 2023 revenues now expected to be between $9.12 billion and $9.22 billion
- Base business revenues are expected to increase by 5.8% to 7.0%.
- Reported diluted EPS now expected to be between $7.52 and $7.92
- Adjusted diluted EPS expected to be between $8.50 and $8.90
- Cash provided by operations expected to be at least $1.3 billion
Challenges Ahead
- Net revenues decrease is expected to be between 7.7% and 6.7%.
- COVID-19 testing revenues are expected to decrease by 86.2% to 89.7%.
- Capital expenditures are expected to be approximately $400 million.
- Updated guidance reflects expectations for revenue growth and improved profitability in the base business.
- Company continues to operate in a tight labor market.