Quest Diagnostics Q1 Earnings & Revenues Top Estimates, Stock Up

Quest Diagnostics Inc.’s DGX first-quarter 2025 adjusted earnings per share (EPS) of $2.21 beat the Zacks Consensus Estimate by 2.8%. The metric also exceeded the year-ago adjusted figure by 8.3%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).Certain one-time expenses, like the ones related to amortization expenses, certain restructuring and integration charges, other expenses and excess tax benefits associated with stock-based compensations, were excluded from the quarter’s adjusted figures. GAAP earnings came in at $1.94 per share, up 12.8% from last year’s comparable figure.DGX shares have gained nearly 6.7% in pre-market trading following the earnings report.DGX’s Revenues in DetailRevenues reported in the first quarter rose 12.1% year over year to $2.65 billion. The metric surpassed the Zacks Consensus Estimate by 1.5%.Diagnostic Information Services revenues in the quarter were up 12.7% on a year-over-year basis to $2.59 billion. This figure also surpassed our model’s projection of $2.53 billion for the first quarter.Quest Diagnostics Incorporated Price, Consensus and EPS Surprise Quest Diagnostics Incorporated price-consensus-eps-surprise-chart | Quest Diagnostics Incorporated QuoteVolumes (measured by the number of requisitions) were up 12.5% year over year in the first quarter. Revenue per requisition increased 0.3% year over year.DGX’s Margin PerformanceThe cost of services during the reported quarter was $1.79 billion, up 12.2% year over year. The gross profit came in at $863 million, up 11.9% year over year. The gross margin was 32.5%, almost similar to the year-ago quarter’s number.SG&A expenses were $476 million in the quarter under review, up 8.1% from the first quarter of 2024. The adjusted operating margin of 14.6% represented a 60-basis-point expansion year over year.DGX’s Liquidity and Financial HealthQuest Diagnostics exited the first quarter of 2025 with cash and cash equivalents of $188 million compared with $549 million at the end of fourth-quarter 2024. The cumulative net cash provided by operating activities at the end of the first quarter of 2025 was $314 million compared with $154 million at the end of the same period last year.The company has a five-year annualized dividendgrowth rate of 7.17%.DGX’s 2025 GuidanceQuest Diagnostics reaffirmed its full-year 2025 revenue outlook, expected in the range of $10.70 billion-$10.85 billion, which indicates a year-over-year increase of 8.4%-9.9%. The Zacks Consensus Estimate is pegged at $10.76 billion.Adjusted EPS is expected in the range of $9.55-$9.80, also unchanged from the initial projection. The Zacks Consensus Estimate for the metric is pegged at $9.68.Our View on DGX StockQuest Diagnostics ended the first quarter of 2025 on a solid note, with both earnings and revenues beating respective estimates. The top line benefited from a rebound in demand in March, following weather-related disruptions earlier in the quarter. The growth was led by contributions from acquisitions and large enterprise accounts, robust uptake of the advanced diagnostics portfolio and expanded health plan access. Expansion of operating margin in the quarter also bodes well.DGX’s Zacks Rank & Key PicksQuest Diagnostics currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader medical space are AngioDynamics ANGO, Veeva Systems VEEV and Masimo MASI.AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today’s Zacks #1 Rank stocks here.ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 70.9%.Veeva Systems, sporting a Zacks Rank #1 at present, posted fourth-quarter fiscal 2025 adjusted EPS of $1.75, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $720.9 million surpassed the Zacks Consensus Estimate by 3.2%.VEEV has an estimated long-term earnings growth rate of 26.6% compared with the industry’s 20.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.9%.Masimo, currently sporting a Zacks Rank #1, reported a fourth-quarter 2024 adjusted EPS of $1.80, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $600.7 million topped the Zacks Consensus Estimate by 0.8%.MASI has an estimated earnings yield of 3.5% for fiscal 2025 compared with the industry’s 3.6% yield. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 14.4%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AngioDynamics, Inc. (ANGO): Free Stock Analysis Report Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report Masimo Corporation (MASI): Free Stock Analysis Report Veeva Systems Inc. (VEEV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks