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Jun 30, 2024

Quest Diagnostics Q2 2024 Earnings Report

Quest Diagnostics' Q2 2024 financial results were announced, showing revenue growth and adjusted EPS increase.

Key Takeaways

Quest Diagnostics reported a 2.5% increase in revenue to $2.40 billion for Q2 2024. Reported EPS decreased slightly by 1.0% to $2.03, while adjusted EPS increased by 2.2% to $2.35. The company has raised its full-year 2024 revenue and EPS guidance.

Second quarter revenues increased by 2.5% to $2.40 billion compared to 2023.

Reported diluted EPS decreased by 1.0% to $2.03, while adjusted diluted EPS increased by 2.2% to $2.35.

Base business revenue grew by nearly 4%.

Full year 2024 revenue guidance is now expected to be between $9.50 billion and $9.58 billion.

Total Revenue
$2.4B
Previous year: $2.34B
+2.5%
EPS
$2.35
Previous year: $2.3
+2.2%
Revenue per requisition
1.6%
Previous year: -4.9%
-132.7%
Requisition volume
1.1%
Previous year: 0.2%
+450.0%
Organic requisition volume
0.7%
Previous year: -0.3%
-333.3%
Gross Profit
$776M
Previous year: $792M
-2.0%
Cash and Equivalents
$271M
Previous year: $126M
+115.1%
Free Cash Flow
$268M
Previous year: $340M
-21.2%
Total Assets
$13.9B
Previous year: $13.4B
+3.4%

Quest Diagnostics

Quest Diagnostics

Quest Diagnostics Revenue by Segment

Forward Guidance

Quest Diagnostics updated its full year 2024 guidance, expecting revenues between $9.50 billion and $9.58 billion, and adjusted diluted EPS between $8.80 and $9.00.

Positive Outlook

  • Net revenues are expected to be between $9.50 billion and $9.58 billion.
  • Net revenues increase between 2.7% and 3.5%.
  • Reported diluted EPS is expected to be between $7.57 and $7.77.
  • Adjusted diluted EPS is expected to be between $8.80 and $9.00.
  • Cash provided by operations is expected to be approximately $1.3 billion.

Challenges Ahead

  • Guidance does not include the impact of the pending LifeLabs acquisition.
  • Capital expenditures are expected to be approximately $420 million.
  • Uncertainty remains around when the LifeLabs transaction will close.
  • The transaction is subject to customary closing conditions and approvals.
  • Canadian regulatory approvals are needed for the LifeLabs acquisition.