Quest Diagnostics Results Top Estimate; Sees FY Revenue At Top End Of Range

(RTTNews) - Quest Diagnostics Inc (DGX) said Thursday its third-quarter profit dropped from last year, when it recorded a massive one-time gain. Meanwhile revenues rose over six percent, on growth in diagnostic information services and some contributions from acquisitions. Excluding items, adjusted earnings topped Wall Street estimates by two cents and revenues surpassed expectations.

Quest again tightened its earnings guidance for 2014 with revenues expected at the top end of its prior range.

Following the announcement, Quest shares gained about 3 percent in morning trade on the New York Stock Exchange.

Quest, based in Madison, New Jersey, posted quarterly net earnings of $129 million or $0.88 per share, compared with $405 million or $2.68 per share last year.

Results for the quarter included after-tax restructuring and other charges of $129 million. The prior year included, among other items, an after-tax gain of about $300 million related to the sale of Ibrutinib royalty rights.

Excluding items, adjusted earnings for the quarter were $1.10 per share, compared with $1.02 per share last year.

On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $1.08 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the third quarter were up 6.5 percent at $1.9 billion, compared with $1.8 billion in the prior year. Analysts expected revenues of $1.87 billion for the quarter.

Diagnostic information services revenues increased 7.1 percent from a year ago. Acquisitions contributed about 7 percent to the topline.

For fiscal year 2014, the company estimates adjusted earnings of $4.03 and $4.07 per share, from a prior range of $4.00 to $4.10 per share. Revenues are expected to rise about 3.5 percent, compared with prior guidance of 2.5 to 3.5 percent.

Analysts currently expect earnings of $4.05 per share on revenues of $7.36 billion for the year.

Quest stock is trading at $62.90, up $1.69 or 2.76%, on a volume of 1.1 million shares.