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Dec 31, 2021

Quest Diagnostics Q4 2021 Earnings Report

Reported a decrease in revenue and EPS compared to the previous year, but base business revenues grew. The company provided full year 2022 guidance and increased its quarterly dividend.

Key Takeaways

Quest Diagnostics reported Q4 2021 financial results, with revenues of $2.74 billion, a decrease of 8.6% compared to Q4 2020. Diluted EPS was $3.12, down 25.9% from 2020, and adjusted diluted EPS was $3.33, down 25.7% from 2020. The company provided full year 2022 guidance and increased its quarterly dividend by 6.5% to $0.66 per share.

Fourth quarter revenues decreased by 8.6% versus 2020.

Fourth quarter diluted EPS decreased by 25.9% from 2020; and adjusted diluted EPS decreased by 25.7% from 2020.

Base business revenues grew more than 19 percent year over year, achieving record levels.

Full year 2022 reported diluted EPS is expected to be between $7.63 and $8.33, and adjusted diluted EPS is expected to be between $8.65 and $9.35.

Total Revenue
$2.74B
Previous year: $3B
-8.6%
EPS
$3.33
Previous year: $4.48
-25.7%
Requisition volume
1.3%
Previous year: 26.8%
-95.1%
Organic requisition volume
0.2%
Previous year: 22.3%
-99.1%
Gross Profit
$1.03B
Previous year: $1.27B
-19.1%
Cash and Equivalents
$872M
Previous year: $1.16B
-24.7%
Free Cash Flow
$337M
Previous year: $379M
-11.1%
Total Assets
$13.6B
Previous year: $14B
-3.0%

Quest Diagnostics

Quest Diagnostics

Quest Diagnostics Revenue by Segment

Forward Guidance

We estimate full year 2022 guidance as follows: Net revenues $9.0 billion-$9.5 billion Reported diluted EPS $7.63-$8.33 Adjusted diluted EPS $8.65-$9.35 Cash provided by operations At least $1.6 billion Capital expenditures Approximately $400 million

Positive Outlook

  • Base business revenues $8.3 billion-$8.5 billion
  • Base business revenues increase 3.5%-6.0%
  • Adjusted diluted EPS $8.65 - $9.35
  • Cash provided by operations At least $1.6 billion
  • Capital expenditures Approximately $400 million

Challenges Ahead

  • Net revenues $9.0 billion-$9.5 billion
  • Net revenues decrease (16.6)%-(11.9)%
  • COVID-19 testing revenues $0.7 billion-$1.0 billion
  • COVID-19 testing revenues decrease (74.7)%-(63.9)%
  • Reported diluted EPS $7.63-$8.33