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Sep 30, 2023

Quest Diagnostics Q3 2023 Earnings Report

Quest Diagnostics' Q3 2023 financial performance declined compared to the previous year, but base business revenues saw growth.

Key Takeaways

Quest Diagnostics reported a decrease in revenue and EPS for Q3 2023 compared to Q3 2022. Total revenues were $2.30 billion, a 7.7% decrease, while reported EPS was $1.96, a 9.7% decrease. However, base business revenues grew by 4.6%. The company has updated its full-year 2023 guidance, expecting revenues between $9.19 billion and $9.24 billion and adjusted diluted EPS between $8.65 and $8.75.

Third quarter revenues decreased by 7.7% to $2.30 billion compared to 2022.

Reported diluted EPS for the third quarter decreased by 9.7% to $1.96 compared to 2022.

Base business revenues for the third quarter increased by 4.6% from 2022.

Full year 2023 revenue guidance updated to $9.19 billion - $9.24 billion; adjusted diluted EPS guidance updated to $8.65 - $8.75.

Total Revenue
$2.3B
Previous year: $2.49B
-7.7%
EPS
$2.22
Previous year: $2.36
-5.9%
Revenue per requisition
-7.2%
Previous year: -5.1%
+41.2%
Requisition volume
-0.5%
Previous year: -6.2%
-91.9%
Organic requisition volume
-1%
Previous year: -6.4%
-84.4%
Gross Profit
$754M
Previous year: $868M
-13.1%
Cash and Equivalents
$143M
Previous year: $700M
-79.6%
Free Cash Flow
$102M
Previous year: $384M
-73.4%
Total Assets
$13.5B
Previous year: $13.2B
+2.0%

Quest Diagnostics

Quest Diagnostics

Quest Diagnostics Revenue by Segment

Forward Guidance

The company has updated its Full Year 2023 guidance with revenue expected to be between $9.19 billion and $9.24 billion and adjusted diluted EPS expected to be between $8.65 and $8.75.

Positive Outlook

  • Net revenues between $9.19 billion and $9.24 billion
  • Base business revenues between $8.99 billion and $9.04 billion
  • Base business revenues increase 6.7% to 7.3%
  • COVID-19 testing revenues approximately $200 million
  • Adjusted diluted EPS between $8.65 and $8.75

Challenges Ahead

  • Net revenues decrease (7.0)% to (6.5)%
  • COVID-19 testing revenues decrease (86.2)%
  • Reported diluted EPS $7.61 to $7.71
  • Cash provided by operations Approximately $1.3 billion
  • Capital expenditures Approximately $400 million