## Quest Diagnostics (DGX) Earnings Preview: What to Expect on October 22nd
Get ready for another earnings season highlight as Quest Diagnostics, a leading independent provider of diagnostic testing services in the U.S., is scheduled to release its quarterly earnings report on Tuesday, October 22nd. Investors and analysts alike are eagerly anticipating the announcement, hoping for a strong performance and optimistic guidance for the upcoming quarter.
Analyst Expectations and Key Metrics
Analysts are predicting that Quest Diagnostics will report an earnings per share (EPS) of $2.27 for the third quarter of 2024. This follows a trend of strong performance in recent quarters. For new investors, it’s important to remember that guidance for the next quarter can significantly impact stock price movements. Investors will be watching closely to see if Quest Diagnostics can exceed these estimates and provide a positive outlook for the future.
Looking Back at Historical Performance
Quest Diagnostics has demonstrated consistent earnings performance over the past few quarters, delivering positive surprises and driving share price gains. In the previous quarter (Q2 2024), the company exceeded EPS expectations by $0.01, leading to a 2.09% increase in share price the following day. Here’s a breakdown of Quest Diagnostics’s recent performance and the resulting price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | $2.34 | $2.35 | 2.0% |
| Q1 2024 | $1.85 | $2.04 | 1.0% |
| Q4 2023 | $2.11 | $2.15 | -2.0% |
| Q3 2023 | $2.19 | $2.22 | 2.0% |
Long-Term Shareholder Outlook
As of October 18th, Quest Diagnostics shares were trading at $149.65. Over the past 52 weeks, shares have gained 19.88%, a positive sign for long-term investors. The consistent growth in share price suggests that investors have confidence in the company’s future prospects.
Analyst Sentiment and Peer Comparisons
Understanding the market sentiment and expectations within the industry is crucial for investors. Here’s a breakdown of the latest analyst insights on Quest Diagnostics and its key competitors:
*
Quest Diagnostics:
The consensus rating for Quest Diagnostics is Neutral, based on 5 analyst ratings. The average one-year price target is $157.6, implying a potential 5.31% upside.*
Labcorp Holdings:
Analysts favor a Neutral trajectory for Labcorp Holdings, with an average one-year price target of $256.09, suggesting a potential 71.13% upside.*
DaVita:
Analysts maintain a Neutral status for DaVita, with an average one-year price target of $162.0, indicating a potential 8.25% upside.*
R1 RCM:
Analysts favor a Neutral trajectory for R1 RCM, with an average one-year price target of $14.3, suggesting a potential 90.44% downside.Peer Analysis: Key Metrics
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Quest Diagnostics | Neutral | 2.52% | $804M | 3.49% |
| Labcorp Holdings | Neutral | 6.17% | $926.40M | 2.57% |
| DaVita | Neutral | 6.21% | $1.04B | 28.57% |
| R1 RCM | Neutral | 11.98% | $121.60M | -0.27% |
Key Takeaways from Peer Analysis:
* Quest Diagnostics ranks in the middle for revenue growth among its peers.
* It boasts the highest gross profit margin.
* Quest Diagnostics’s return on equity also sits in the middle of its competitor group.
Get to Know Quest Diagnostics Better
Quest Diagnostics is a leading force in the diagnostic testing industry, generating over 95% of its revenue through clinical testing, anatomic pathology, esoteric testing, and substance abuse testing. The company operates a national network of approximately 2,300 patient service centers, along with partnerships with numerous doctor’s offices and hospitals. They also offer a smaller diagnostic solutions segment focused on clinical trials testing, risk assessment services, and information technology solutions.
Unraveling Quest Diagnostics’ Financial Story
*
Market Capitalization:
Quest Diagnostics boasts a market capitalization that surpasses industry averages, reflecting its significant size and strong market recognition.*
Revenue Growth:
Quest Diagnostics has demonstrated impressive revenue growth in recent months, achieving a rate of 2.52% as of June 30th, 2024. While this growth rate falls short of the average among peers in the healthcare sector, it signifies a substantial increase in top-line earnings.*
Net Margin:
Quest Diagnostics’s net margin stands out, exceeding industry benchmarks at 9.51%. This highlights efficient cost management and strong financial health.*
Return on Equity (ROE):
Quest Diagnostics’s ROE surpasses industry averages, demonstrating effective use of equity capital and strong financial performance, with an impressive ROE of 3.49%.*
Return on Assets (ROA):
Quest Diagnostics’s ROA also outperforms industry standards, signifying exceptional financial performance. The company achieves an impressive 1.64% ROA, effectively utilizing its assets for optimal returns.*
Debt Management:
Quest Diagnostics maintains a debt-to-equity ratio below industry norms, indicating a sound financial structure with a ratio of 0.77.Stay Informed on Quest Diagnostics’ Earnings
To keep up-to-date on all earnings releases for Quest Diagnostics, visit our earnings calendar on our site. This will provide you with the latest information on when to expect the next earnings report and any related news or announcements.