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Dec 31, 2019

Quest Diagnostics Q4 2019 Earnings Report

Reported record fourth quarter revenues and earnings, provided guidance for full year 2020, and increased dividend.

Key Takeaways

Quest Diagnostics reported record fourth quarter revenues of $1.93 billion, up 4.8% versus 2018. Diluted earnings per share from continuing operations was $1.86, up 101.2% from 2018, and adjusted diluted EPS was $1.67, up 23.7% from 2018.

Record fourth quarter revenues of $1.93 billion, up 4.8% versus 2018

Record fourth quarter diluted earnings per share from continuing operations ("EPS") of $1.86, up 101.2% from 2018 primarily due to a gain associated with the sale and leaseback of a property

Record adjusted diluted EPS of $1.67, up 23.7% from 2018

Board of Directors authorized a 5.7% increase in its quarterly dividend from $0.53 to $0.56 per share

Total Revenue
$1.93B
Previous year: $1.84B
+4.7%
EPS
$1.67
Previous year: $1.36
+22.8%
Revenue per requisition
1.2%
Requisition volume
4.1%
Organic requisition volume
3.4%
Gross Profit
$662M
Previous year: $604M
+9.6%
Cash and Equivalents
$1.19B
Previous year: $135M
+783.0%
Free Cash Flow
$176M
Previous year: $144M
+22.2%
Total Assets
$12.8B
Previous year: $11B
+16.7%

Quest Diagnostics

Quest Diagnostics

Quest Diagnostics Revenue by Segment

Forward Guidance

The company estimates full year 2020 results as follows: Net revenues $7.80 billion - $7.96 billion. Reported diluted EPS Greater than $5.51. Adjusted diluted EPS Greater than $6.60. Cash provided by operations $1.25 billion - $1.30 billion. Capital expenditures $375 million - $400 million.

Positive Outlook

  • Net revenues $7.80 billion - $7.96 billion
  • Net revenues increase 1.0% - 3.0%
  • Reported diluted EPS Greater than $5.51
  • Adjusted diluted EPS Greater than $6.60
  • Cash provided by operations $1.25 billion - $1.30 billion

Challenges Ahead

  • Capital expenditures $375 million - $400 million