Company Reports

Quest Diagnostics is a leading provider of independent diagnostic testing in the US thanks to its network of roughly 2,400 patient service centers across the country. Quest's scale-driven cost advantage allows the firm to benefit from several secular trends, including the proliferation of diagnostic tests and greater clinical reliance on personalized therapies. Additionally, Quest is enjoying a reprieve from Medicare-related pricing pressure as regulators tinker with the method for setting lab test reimbursement rates.

Quest reported second-quarter results that included revenue and adjusted earnings per share growth of 10% and 19%, respectively, with strength across the hospital, physician, and consumer segments. Shares are up 7% at time of writing.

Quest Diagnostics is a leading provider of independent diagnostic testing in the US thanks to its network of roughly 2,400 patient service centers across the country. Quest's size-driven cost advantage allow the firm to benefit from several secular trends, including the proliferation of diagnostic tests and greater clinical reliance on personalized therapies. Additionally, Quest is enjoying a reprieve from Medicare-related pricing pressure as regulators tinker with the method for setting lab test reimbursement rates.

Quest posted first-quarter performance that included organic revenue and adjusted earnings growth of 9% and 12%, respectively, year over year. Clinical diagnostic volume rose 11% organically, more than offsetting revenue per requisition that declined 1%.

Quest Diagnostics is a leading provider of independent diagnostic testing in the US thanks to its network of roughly 2,400 patient service centers across the country. Quest's size-driven cost advantage allow the firm to benefit from several secular trends, including the proliferation of diagnostic tests and greater clinical reliance on personalized therapies. Additionally, Quest is enjoying a reprieve from Medicare-related pricing pressure as regulators tinker with the method for setting lab test reimbursement rates.

Quest reported fourth-quarter revenue and adjusted EPS growth of 7% and 9%, respectively, capping off strong performance for the full year. The addition of Fresenius patient testing and Corewell Health collaboration supported the robust results.

Quest delivered third-quarter results that featured organic revenue growth of 4%, while acquisitions drove total revenue up by 13%. Profitability kept pace with adjusted EPS, growing 13% year over year.

Quest Diagnostics delivered second-quarter revenue and adjusted earnings growth of 15% and 14%, respectively, boosted by the addition of the Lifelabs acquisition.

Quest Diagnostics is a leading provider of independent diagnostic testing in the United States thanks to its network of roughly 2,300 patient service centers across the country. We think its size and cost advantage allow Quest to benefit from several secular trends, including the proliferation of diagnostic tests and greater clinical reliance on personalized therapies. Additionally, Quest is enjoying a reprieve from Medicare-related pricing pressure as regulators tinker with the method for setting lab test reimbursement rates.

Quest Diagnostics posted first-quarter revenue growth of 12%, and tight control over expenses drove earnings growth up 13% year over year.

Quest Diagnostics is a leading provider of independent diagnostic testing in the United States thanks to its network of roughly 2,300 patient service centers across the country. We think its size and cost advantage allow Quest to benefit from several secular trends, including the proliferation of diagnostic tests and greater clinical reliance on personalized therapies. Additionally, Quest is enjoying a reprieve from Medicare-related pricing pressure as regulators tinker with the method for setting lab test reimbursement rates.

Quest Diagnostics wrapped up 2024 with fourth-quarter results that featured both revenue and earnings growth of 15% year over year, reflecting the impact of key acquisitions made in 2024, including the addition of LifeLabs in Canada.

Quest Diagnostics posted strong third-quarter results, with an assist from acquisitions that boosted quarterly volume growth to 5.5% year over year.

Quest Diagnostics is a leading provider of independent diagnostic testing in the United States thanks to its network of roughly 2,300 patient service centers across the country. We think its size and cost advantage allow Quest to benefit from several secular trends, including the proliferation of diagnostic tests and greater clinical reliance on personalized therapies. Additionally, Quest is enjoying a reprieve from Medicare-related pricing pressure as regulators tinker with the method for setting lab test reimbursement rates.

Quest Diagnostics delivered second-quarter results that held few surprises, and the firm remains on track to meet our full-year estimates. We’re leaving our fair value estimate unchanged for now. Quarterly revenue rose 2.5% year over year, supported by solid diagnostic test volume growth of 1.1% and price per requisition increasing by 1.6%. Though these underlying metrics softened a bit sequentially, they remain decent, and we think they reflect slightly heightened medical utilization. We saw little in the quarter to alter our view of Quest's narrow economic moat and its cost advantage.

Narrow-moat Quest Diagnostics posted solid first-quarter results that held few surprises. With the firm on track to meet our expectations for the full year, we’re leaving our $143 fair value estimate intact. With quarterly revenue up 1.5% on a consolidated basis, Quest has finally reached the end of the long covid-19 unwinding, as base business growth of close to 6% more than offset the decline in covid revenue. Considering covid revenue is small enough to be immaterial this year, Quest’s growth will rely on the rest of its test portfolio. Fortunately, test utilization continued to demonstrate strength, as base business volume rose 3% year over year. The robust results were strong enough for management to raise its outlook for 2024. Our revenue estimate for 2024 remains at the lower end of Quest’s new guidance, primarily because we’re wary of how long the strength in medical utilization last year can continue into 2024. Management has indicated utilization is likely to normalize through the year, and we’re inclined to agree.

Quest Diagnostics finished the year in strong fashion, generally consistent with our 2023 estimates, and with our projections for 2024 within the bounds of management’s outlook, we’re leaving our fair value estimate unchanged. On the whole, fundamentals of the underlying non-COVID-19 business remain steady. Though quarterly consolidated revenue fell 2% (driven by declines in COVID-19 demand), quarterly base business rose 5%, supported by a year-over-year volume increase of 5.2%. We think the fourth-quarter volume growth bodes well for continued strength in 2024. On the negative side, quarterly revenue-per-requisition fell by 3.5%, fueled primarily by the loss of high-margin COVID-19 tests. By midyear, we anticipate Quest will have settled in at normalized COVID-19 test contributions. The firm’s recent progress with its hospital reference lab business, impending rollout of its Haystack oncology test to detect minimal residual disease, and ongoing acquisition of hospital outreach programs leave us comfortable that Quest’s narrow economic moat remains intact.

Quest Diagnostics is a leading provider of independent diagnostic testing in the United States thanks to its network of roughly 2,300 patient service centers across the country. We think the company's size and cost advantage allow Quest to benefit from several secular trends, including the proliferation of diagnostic tests and greater clinical reliance on personalized therapies. Additionally, we expect that Quest will see a reprieve from Medicare-related pricing pressure as regulators tinker with the method for setting lab test reimbursement rates.

Narrow-moat Quest Diagnostics posted decent third-quarter results that illustrated another quarter of solid demand for non-COVID-19 tests that partially offset the significant decline in COVID-19 test revenue. With the top and bottom lines on track to meet our full-year expectations, we’re leaving our $143 fair value estimate unchanged. While quarterly total revenue fell 8% year over year, this was primarily driven by the 92% decrease in COVID-19 test revenue. We were pleased to see base business sales up 5% in the quarter, supported by mid-single-digit volume growth. In particular, several test areas saw double-digit revenue growth, including neurology, reproductive, immunology, and sexually transmitted infections. We think Quest has already weathered the worst of the COVID-19 decline, as both demand and reimbursement for the tests have fallen. Quarterly sequential declines have decelerated markedly and absolute COVID-19 revenue is now a small contributor to Quest's consolidated sales.

Narrow-moat Quest Diagnostics delivered second-quarter results that slightly exceeded our expectations on the top line, but that was offset by earnings that fell slightly short of our full-year estimates. Our fair value estimate is unchanged. Similar to the last five quarters, second-quarter demand for COVID-19 tests fell significantly (down 88% year over year), which should continue through the rest of 2023. However, absolute revenue from COVID tests has shrunk so much that the decline should have less of an impact on consolidated results. Additionally, recovery in the base business remains solid, with quarterly revenue up 9.5% from the prior-year period. Though we expect those outsize recovery rates to moderate as comparable quarters become more challenging, we think solid demand should support at least 2% revenue growth through 2024. If the proposed Saving Access to Laboratory Services Act supersedes Protecting Access to Medicare Act, there may be mild upside to our revenue estimate for next year. Pressure on profitability could continue this year thanks to the tight labor market. Employee turnover has been a persistent challenge, and we wouldn’t be surprised to see this last into next year, even as macro indicators suggest more people seek to enter the workforce again.