Quest Diagnostics Reports Second Quarter 2024 Financial Results; Raises Guidance for Full Year 2024
Quest Diagnostics (NYSE: DGX) reported strong Q2 2024 financial results, with revenues of $2.40 billion, up 2.5% from 2023. The company's reported diluted EPS was $2.03, down 1.0%, while adjusted diluted EPS increased 2.2% to $2.35. Quest raised its full-year 2024 guidance, now expecting revenues between $9.50 billion and $9.58 billion. The company's performance was driven by base business revenue growth of nearly 4%, new customer acquisitions, and increased adoption of advanced diagnostics. Quest also announced four strategic acquisitions, including LifeLabs in Canada and select outreach lab assets in the U.S., to expand its presence in key markets and enhance digital pathology capabilities.
Quest Diagnostics (NYSE: DGX) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con ricavi di 2,40 miliardi di dollari, in aumento del 2,5% rispetto al 2023. L'utile per azione diluito riportato era di 2,03 dollari, in calo dell'1,0%, mentre l'utile per azione diluito rettificato è aumentato del 2,2% a 2,35 dollari. Quest ha rivisto al rialzo le previsioni per l'intero anno 2024, prevedendo ora ricavi tra 9,50 miliardi e 9,58 miliardi di dollari. Le performance dell'azienda sono state trainate da una crescita del fatturato del business di base di quasi il 4%, nuove acquisizioni di clienti e un maggiore utilizzo di diagnostica avanzata. Quest ha anche annunciato quattro acquisizioni strategiche, tra cui LifeLabs in Canada e alcuni asset di laboratori di outreach negli Stati Uniti, per espandere la propria presenza in mercati chiave e migliorare le capacità di patologia digitale.
Quest Diagnostics (NYSE: DGX) informó sobre resultados financieros sólidos para el segundo trimestre de 2024, con ingresos de 2,40 mil millones de dólares, un aumento del 2,5% con respecto a 2023. El EPS diluido reportado de la compañía fue de 2,03 dólares, una disminución del 1,0%, mientras que el EPS diluido ajustado aumentó un 2,2% a 2,35 dólares. Quest elevó su pronóstico para todo el año 2024, esperando ahora ingresos entre 9,50 mil millones y 9,58 mil millones de dólares. El rendimiento de la compañía fue impulsado por un crecimiento de ingresos del negocio base de casi el 4%, nuevas adquisiciones de clientes y un aumento en la adopción de diagnósticos avanzados. Quest también anunció cuatro adquisiciones estratégicas, incluyendo LifeLabs en Canadá y algunos activos de laboratorios de outreach en EE. UU., para expandir su presencia en mercados clave y mejorar sus capacidades en patología digital.
Quest Diagnostics (NYSE: DGX)는 2024년 2분기 강력한 재무 결과를 보고하며, 수익이 24억 달러로 2023년 대비 2.5% 증가했습니다. 회사의 보고된 희석 주당 순익은 2.03달러로 1.0% 감소했으며, 조정된 희석 주당 순익은 2.35달러로 2.2% 증가했습니다. Quest는 이제 2024년 전체 예상 수익을 95억 달러에서 95억 8천만 달러 사이로 상향 조정했고, 회사의 성과는 거의 4%의 기본 사업 수익 성장에 의해 주도되었습니다. 새로운 고객 확보 및 고급 진단 채택 증가가 그 배경입니다. 또한 Quest는 전략적 인수 4건을 발표했으며, 여기에는 캐나다의 LifeLabs와 미국의 일부 아웃리치 실험실 자산이 포함되어, 주요 시장에서의 입지를 확장하고 디지털 병리학 역량을 강화할 것입니다.
Quest Diagnostics (NYSE: DGX) a annoncé des résultats financiers solides pour le deuxième trimestre 2024, avec des revenus de 2,40 milliards de dollars, en hausse de 2,5 % par rapport à 2023. Le bénéfice par action dilué déclaré était de 2,03 dollars, en baisse de 1,0 %, tandis que le bénéfice par action dilué ajusté a augmenté de 2,2 % pour atteindre 2,35 dollars. Quest a relevé ses prévisions pour l'année entière 2024, s'attendant désormais à des revenus compris entre 9,50 milliards et 9,58 milliards de dollars. Les performances de l'entreprise ont été soutenues par une croissance des revenus d'activités de base de près de 4 %, de nouvelles acquisitions de clients et une adoption accrue des diagnostics avancés. Quest a également annoncé quatre acquisitions stratégiques, dont LifeLabs au Canada et certains actifs de laboratoires de proximité aux États-Unis, afin d'élargir sa présence sur les marchés clés et d'améliorer ses capacités de pathologie numérique.
Quest Diagnostics (NYSE: DGX) hat starke Finanzzahlen für das zweite Quartal 2024 veröffentlicht, mit einem Umsatz von 2,40 Milliarden Dollar, was einem Anstieg von 2,5% im Vergleich zu 2023 entspricht. Das berichtete verwässerte Ergebnis je Aktie betrug 2,03 Dollar, ein Rückgang von 1,0%, während das bereinigte verwässerte Ergebnis je Aktie um 2,2% auf 2,35 Dollar stieg. Quest hat die Prognose für das gesamte Jahr 2024 angehoben und erwartet nun Einnahmen zwischen 9,50 und 9,58 Milliarden Dollar. Die Leistung des Unternehmens wurde durch ein Umsatzwachstum des Basisgeschäfts von fast 4% angetrieben, durch neue Kundenakquisitionen und eine erhöhte Nutzung fortschrittlicher Diagnostik. Quest kündigte zudem vier strategische Akquisitionen an, darunter LifeLabs in Kanada und ausgewählte Outreach-Laborvermögen in den USA, um seine Präsenz in wichtigen Märkten auszubauen und die digitalen Pathologiefähigkeiten zu verbessern.
- Revenue increased 2.5% to $2.40 billion in Q2 2024
- Adjusted diluted EPS grew 2.2% to $2.35
- Base business revenue growth of nearly 4%
- Raised full-year 2024 guidance for revenues and adjusted EPS
- Announced four strategic acquisitions to expand market presence and capabilities
- Reported diluted EPS decreased 1.0% to $2.03
- Cash provided by operations decreased 18.9% to $360 million in Q2 2024
- Operating income as a percentage of net revenues slightly decreased by 0.1%
Insights
Quest Diagnostics' second-quarter financial results and raised full-year guidance indicate several key points for investors. Firstly, the 2.5% revenue growth to $2.40 billion and the adjusted diluted EPS increase of 2.2% to $2.35 reflect solid operational performance. Despite a slight dip in reported EPS by 1.0%, the upward adjustment in full-year revenue and EPS guidance shows management's confidence in sustained growth.
The company's strategic acquisitions, such as LifeLabs and PathAI, are also noteworthy for potential long-term growth. These moves aim to expand Quest Diagnostics’ footprint and leverage advanced diagnostics and digital pathology. This diversification and innovation focus can strengthen Quest's competitive position.
For retail investors, the key takeaway is the overall positive outlook and strategic expansion. The consistent revenue growth, combined with strategic acquisitions, positions Quest Diagnostics for sustained growth. However, cautious monitoring of the integration of these acquisitions and the resulting financial impact is advisable.
The market environment for diagnostic services is evolving, with increasing demand for advanced diagnostics and healthcare utilization. Quest Diagnostics' reported growth in base business revenue by nearly 4% underscores its ability to capitalize on these trends. The 2.8% growth in Diagnostic Information Services revenues further emphasizes this.
The company’s enhanced guidance is a positive signal. Revising full-year revenue estimates to between $9.50 billion and $9.58 billion shows confidence in market conditions and internal efficiencies. The adjusted diluted EPS expectation between $8.80 and $9.00 also supports this positive outlook.
Investors should focus on the alignment of Quest’s acquisitions with market trends. The LifeLabs acquisition, for instance, positions Quest to address the growing and aging population in Canada, while PathAI Diagnostics could lead to innovations in cancer diagnostics. These strategic moves can drive market share and revenue growth, presenting a compelling investment case.
Quest Diagnostics' emphasis on automation and AI for improving operational quality and efficiency is a significant aspect of its growth strategy. The integration of AI into diagnostic processes can lead to faster, more accurate results, enhancing overall service quality. This technological edge can differentiate Quest from competitors in the diagnostics market.
The acquisition of PathAI Diagnostics is particularly strategic. PathAI’s capabilities in digital pathology can revolutionize cancer diagnostics, providing Quest with advanced tools to improve diagnostic accuracy and patient outcomes. This move aligns with the broader trend of digital transformation in healthcare, where AI and machine learning are playing increasingly pivotal roles.
For tech-savvy investors, Quest Diagnostics' focus on leveraging innovative technologies represents a forward-thinking approach. The expected improvements in productivity and profitability through these advancements point to a promising future driven by tech-enabled efficiencies.
- Second quarter revenues of
$2.40 billion 2.5% from 2023 - Second quarter reported diluted earnings per share ("EPS") of
$2.03 1.0% from 2023; and adjusted diluted EPS of$2.35 2.2% from 2023 - Full year 2024 revenues now expected to be between
$9.50 billion $9.58 billion $7.57 $7.77 $8.80 $9.00
"We delivered another strong quarter, with base business revenue growth of nearly
Mr. Davis added: "In addition, we are excited to announce four acquisitions that meet our criteria for growth, profitability and returns, and that will enable us to expand in strategic growth areas. Our planned acquisition of LifeLabs will position us to help this trusted lab leader grow and better serve
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||
(dollars in millions, except per share data) | ||||||||||||
Reported: | ||||||||||||
Net revenues | $ 2,397 | $ 2,338 | 2.5 % | $ 4,763 | $ 4,669 | 2.0 % | ||||||
Diagnostic Information Services revenues | $ 2,333 | $ 2,268 | 2.8 % | $ 4,631 | $ 4,527 | 2.3 % | ||||||
Revenue per requisition | 1.6 % | 0.9 % | ||||||||||
Requisition volume | 1.1 % | 1.4 % | ||||||||||
Organic requisition volume | 0.7 % | 0.9 % | ||||||||||
Operating income (a) | $ 355 | $ 348 | 1.9 % | $ 655 | $ 653 | 0.2 % | ||||||
Operating income as a percentage of net revenues (a) | 14.8 % | 14.9 % | (0.1) % | 13.7 % | 14.0 % | (0.3) % | ||||||
Net income attributable to Quest Diagnostics (a) | $ 229 | $ 235 | (2.4) % | $ 423 | $ 437 | (3.1) % | ||||||
Diluted EPS (a) | $ 2.03 | $ 2.05 | (1.0) % | $ 3.75 | $ 3.83 | (2.1) % | ||||||
Cash provided by operations | $ 360 | $ 444 | (18.9) % | $ 514 | $ 538 | (4.4) % | ||||||
Capital expenditures | $ 92 | $ 104 | (10.8) % | $ 196 | $ 231 | (14.9) % | ||||||
Adjusted (a): | ||||||||||||
Operating income | $ 398 | $ 389 | 2.1 % | $ 747 | $ 739 | 1.0 % | ||||||
Operating income as a percentage of net revenues | 16.6 % | 16.7 % | (0.1) % | 15.7 % | 15.8 % | (0.1) % | ||||||
Net income attributable to Quest Diagnostics | $ 266 | $ 263 | 1.4 % | $ 496 | $ 495 | 0.2 % | ||||||
Diluted EPS | $ 2.35 | $ 2.30 | 2.2 % | $ 4.39 | $ 4.34 | 1.2 % | ||||||
(a) | For further details impacting the year-over-year comparisons related to operating income, operating income as a percentage of net revenues, net income attributable to Quest Diagnostics, and diluted EPS, see note 2 of the financial tables attached below. |
Updated Guidance for Full Year 2024
The company updates its full year 2024 guidance as follows:
Updated Guidance | Prior Guidance | ||||||
Low | High | Low | High | ||||
Net revenues | |||||||
Net revenues increase | 2.7 % | 3.5 % | 1.6 % | 2.5 % | |||
Reported diluted EPS | |||||||
Adjusted diluted EPS | |||||||
Cash provided by operations | Approximately | Approximately | |||||
Capital expenditures | Approximately | Approximately | |||||
The company's updated guidance does not include the impact of the pending LifeLabs acquisition given the uncertainty around when the transaction will close. The company continues to expect to complete the transaction by the end of the year, subject to certain customary closing conditions and approvals, including Canadian regulatory approvals.
Note on Non-GAAP Financial Measures
As used in this press release the term "reported" refers to measures under accounting principles generally accepted in
Non-GAAP adjusted measures are presented because management believes those measures are useful adjuncts to GAAP results. Non-GAAP adjusted measures should not be considered as an alternative to the corresponding measures determined under GAAP. Management may use these non-GAAP measures to evaluate our performance period over period and relative to competitors, to analyze the underlying trends in our business, to establish operational budgets and forecasts and for incentive compensation purposes. We believe that these non-GAAP measures are useful to investors and analysts to evaluate our performance period over period and relative to competitors, as well as to analyze the underlying trends in our business and to assess our performance. The additional tables attached below include reconciliations of non-GAAP adjusted measures to GAAP measures.
Conference Call Information
Quest Diagnostics will hold its quarterly conference call to discuss financial results beginning at 8:30 a.m. Eastern Time today. The conference call can be accessed by dialing 888-455-0391 within the
A replay of the call may be accessed online at www.QuestDiagnostics.com/investor or, from approximately 10:30 a.m. Eastern Time on July 23, 2024 until midnight Eastern Time on August 6, 2024, by phone at 866-363-1805 for domestic callers or 203-369-0193 for international callers. Anyone listening to the call is encouraged to read our periodic reports, on file with the Securities and Exchange Commission, including the discussion of risk factors and historical results of operations and financial condition in those reports.
About Quest Diagnostics
Quest Diagnostics works across the healthcare ecosystem to create a healthier world, one life at a time. We provide diagnostic insights from the results of our laboratory testing to empower people, physicians and organizations to take action to improve health outcomes. Derived from one of the world's largest databases of de-identifiable clinical lab results, Quest's diagnostic insights reveal new avenues to identify and treat disease, inspire healthy behaviors and improve healthcare management. Quest Diagnostics annually serves one in three adult Americans and half the physicians and hospitals in
Forward Looking Statements
The statements in this press release which are not historical facts may be forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that they are made and which reflect management's current estimates, projections, expectations or beliefs and which involve risks and uncertainties that could cause actual results and outcomes to be materially different. Risks and uncertainties that may affect the future results of the company include, but are not limited to, adverse results from pending or future government investigations, lawsuits or private actions, the competitive environment, the complexity of billing, reimbursement and revenue recognition for clinical laboratory testing, changes in government regulations, changing relationships with customers, payers, suppliers or strategic partners, acquisitions and other factors discussed in the company's most recently filed Annual Report on Form 10-K and in any of the company's subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including those discussed in the "Business," "Risk Factors," "Cautionary Factors that May Affect Future Results" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of those reports.
This earnings release, including the attached financial tables, is available online in the Newsroom section at www.QuestDiagnostics.com.
ADDITIONAL TABLES FOLLOW
Quest Diagnostics Incorporated and Subsidiaries Consolidated Statements of Operations For the Three and Six Months Ended June 30, 2024 and 2023 (in millions, except per share data) (unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net revenues | $ 2,397 | $ 2,338 | $ 4,763 | $ 4,669 | |||
Operating costs and expenses and other operating income: | |||||||
Cost of services | 1,593 | 1,546 | 3,188 | 3,106 | |||
Selling, general and administrative | 416 | 416 | 856 | 855 | |||
Amortization of intangible assets | 29 | 28 | 58 | 54 | |||
Other operating expense, net | 4 | — | 6 | 1 | |||
Total operating costs and expenses, net | 2,042 | 1,990 | 4,108 | 4,016 | |||
Operating income | 355 | 348 | 655 | 653 | |||
Other income (expense): | |||||||
Interest expense, net | (44) | (37) | (87) | (72) | |||
Other income, net | 3 | 6 | 12 | 13 | |||
Total non-operating expense, net | (41) | (31) | (75) | (59) | |||
Income before income taxes and equity in earnings of equity method investees | 314 | 317 | 580 | 594 | |||
Income tax expense | (74) | (75) | (140) | (140) | |||
Equity in earnings of equity method investees, net of taxes | — | 7 | 8 | 12 | |||
Net income | 240 | 249 | 448 | 466 | |||
Less: Net income attributable to noncontrolling interests | 11 | 14 | 25 | 29 | |||
Net income attributable to Quest Diagnostics | $ 229 | $ 235 | $ 423 | $ 437 | |||
Earnings per share attributable to Quest Diagnostics' common stockholders: | |||||||
Basic | $ 2.05 | $ 2.08 | $ 3.79 | $ 3.88 | |||
Diluted | $ 2.03 | $ 2.05 | $ 3.75 | $ 3.83 | |||
Weighted average common shares outstanding: | |||||||
Basic | 111 | 112 | 111 | 112 | |||
Diluted | 112 | 114 | 112 | 114 | |||
Quest Diagnostics Incorporated and Subsidiaries Consolidated Balance Sheets June 30, 2024 and December 31, 2023 (in millions, except per share data) (unaudited) | |||
June 30, | December 31, | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 271 | $ 686 | |
Accounts receivable, net | 1,319 | 1,210 | |
Inventories | 182 | 190 | |
Prepaid expenses and other current assets | 245 | 286 | |
Total current assets | 2,017 | 2,372 | |
Property, plant and equipment, net | 1,832 | 1,816 | |
Operating lease right-of-use assets | 603 | 602 | |
Goodwill | 7,885 | 7,733 | |
Intangible assets, net | 1,202 | 1,166 | |
Investments in equity method investees | 126 | 135 | |
Other assets | 216 | 198 | |
Total assets | $ 13,881 | $ 14,022 | |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Accounts payable and accrued expenses | $ 1,247 | $ 1,359 | |
Current portion of long-term debt | 606 | 303 | |
Current portion of long-term operating lease liabilities | 159 | 153 | |
Total current liabilities | 2,012 | 1,815 | |
Long-term debt | 3,816 | 4,410 | |
Long-term operating lease liabilities | 507 | 503 | |
Other liabilities | 811 | 876 | |
Redeemable noncontrolling interest | 79 | 76 | |
Stockholders' equity: | |||
Quest Diagnostics stockholders' equity: | |||
Common stock, par value December 31, 2023; 162 shares issued as of both June 30, 2024 and December 31, 2023 | 2 | 2 | |
Additional paid-in capital | 2,314 | 2,320 | |
Retained earnings | 9,080 | 8,825 | |
Accumulated other comprehensive loss | (19) | (14) | |
Treasury stock, at cost; 51 shares as of both June 30, 2024 and December 31, 2023 | (4,760) | (4,826) | |
Total Quest Diagnostics stockholders' equity | 6,617 | 6,307 | |
Noncontrolling interests | 39 | 35 | |
Total stockholders' equity | 6,656 | 6,342 | |
Total liabilities and stockholders' equity | $ 13,881 | $ 14,022 | |
Quest Diagnostics Incorporated and Subsidiaries Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2024 and 2023 (in millions) (unaudited) | |||
Six Months Ended June 30, | |||
2024 | 2023 | ||
Cash flows from operating activities: | |||
Net income | $ 448 | $ 466 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 233 | 219 | |
Provision (credit) for credit losses | 3 | (1) | |
Deferred income tax benefit | (36) | (16) | |
Stock-based compensation expense | 42 | 40 | |
Other, net | 16 | 1 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (113) | (38) | |
Accounts payable and accrued expenses | (111) | (156) | |
Income taxes payable | 20 | 5 | |
Other assets and liabilities, net | 12 | 18 | |
Net cash provided by operating activities | 514 | 538 | |
Cash flows from investing activities: | |||
Business acquisitions, net of cash acquired | (248) | (609) | |
Capital expenditures | (196) | (231) | |
Other investing activities, net | 31 | — | |
Net cash used in investing activities | (413) | (840) | |
Cash flows from financing activities: | |||
Proceeds from borrowings | — | 1,147 | |
Repayments of debt | (301) | (828) | |
Exercise of stock options | 28 | 47 | |
Employee payroll tax withholdings on stock issued under stock-based compensation plans | (23) | (28) | |
Dividends paid | (163) | (154) | |
Distributions to noncontrolling interest partners | (18) | (28) | |
Other financing activities, net | (39) | (43) | |
Net cash (used in) provided by financing activities | (516) | 113 | |
Net change in cash and cash equivalents and restricted cash | (415) | (189) | |
Cash and cash equivalents and restricted cash, beginning of period | 686 | 315 | |
Cash and cash equivalents and restricted cash, end of period | $ 271 | $ 126 | |
Cash paid during the period for: | |||
Interest | $ 105 | $ 80 | |
Income taxes | $ 118 | $ 134 | |
Notes to Financial Tables
1) | The computation of basic and diluted earnings per common share is as follows: |
Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(in millions, except per share data) | |||||||
Amounts attributable to Quest Diagnostics' common stockholders: | |||||||
Net income attributable to Quest Diagnostics | $ 229 | $ 235 | $ 423 | $ 437 | |||
Less: earnings allocated to participating securities | 1 | 1 | 2 | 2 | |||
Earnings available to Quest Diagnostics' common stockholders - basic and diluted | $ 228 | $ 234 | $ 421 | $ 435 | |||
Weighted average common shares outstanding - basic | 111 | 112 | 111 | 112 | |||
Effect of dilutive securities: | |||||||
Stock options and performance share units | 1 | 2 | 1 | 2 | |||
Weighted average common shares outstanding - diluted | 112 | 114 | 112 | 114 | |||
Earnings per share attributable to Quest Diagnostics' common stockholders: | |||||||
Basic | $ 2.05 | $ 2.08 | $ 3.79 | $ 3.88 | |||
Diluted | $ 2.03 | $ 2.05 | $ 3.75 | $ 3.83 | |||
2) | The following tables reconcile reported GAAP results to non-GAAP adjusted results: |
Three Months Ended June 30, 2024 | |||||||||||
(dollars in millions, except per share data) | |||||||||||
Operating | Operating | Income tax | Equity in | Net income | Diluted EPS | ||||||
As reported | $ 355 | 14.8 % | $ (74) | $ — | $ 229 | $ 2.03 | |||||
Restructuring and integration charges (a) | 10 | 0.4 | (3) | — | 7 | 0.06 | |||||
Other (b) | 4 | 0.2 | — | — | 4 | 0.03 | |||||
Gains and losses on investments (c) | — | — | (3) | 9 | 6 | 0.05 | |||||
Amortization expense | 29 | 1.2 | (8) | — | 21 | 0.19 | |||||
ETB | — | — | (1) | — | (1) | (0.01) | |||||
As adjusted | $ 398 | 16.6 % | $ (89) | $ 9 | $ 266 | $ 2.35 | |||||
Six Months Ended June 30, 2024 | |||||||||||
(dollars in millions, except per share data) | |||||||||||
Operating | Operating | Income tax | Equity in | Net income | Diluted EPS | ||||||
As reported | $ 655 | 13.7 % | $ (140) | $ 8 | $ 423 | $ 3.75 | |||||
Restructuring and integration charges (a) | 27 | 0.6 | (7) | — | 20 | 0.17 | |||||
Other (b) | 7 | 0.2 | — | — | 7 | 0.06 | |||||
Gains and losses on investments (c) | — | — | (3) | 9 | 6 | 0.05 | |||||
Amortization expense | 58 | 1.2 | (15) | — | 43 | 0.39 | |||||
ETB | — | — | (3) | — | (3) | (0.03) | |||||
As adjusted | $ 747 | 15.7 % | $ (168) | $ 17 | $ 496 | $ 4.39 | |||||
Three Months Ended June 30, 2023 | |||||||||||
(dollars in millions, except per share data) | |||||||||||
Operating | Operating | Income tax | Equity in | Net income | Diluted EPS | ||||||
As reported | $ 348 | 14.9 % | $ (75) | $ 7 | $ 235 | $ 2.05 | |||||
Restructuring and integration charges (a) | 7 | 0.3 | (2) | — | 5 | 0.05 | |||||
Other (b) | 6 | 0.3 | (2) | — | 4 | 0.04 | |||||
Amortization expense | 28 | 1.2 | (7) | — | 21 | 0.18 | |||||
ETB | — | — | (2) | — | (2) | (0.02) | |||||
As adjusted | $ 389 | 16.7 % | $ (88) | $ 7 | $ 263 | $ 2.30 | |||||
Six Months Ended June 30, 2023 | |||||||||||
(dollars in millions, except per share data) | |||||||||||
Operating | Operating | Income tax | Equity in | Net income | Diluted EPS | ||||||
As reported | $ 653 | 14.0 % | $ (140) | $ 12 | $ 437 | $ 3.83 | |||||
Restructuring and integration charges (a) | 26 | 0.5 | (7) | — | 19 | 0.17 | |||||
Other (b) | 6 | 0.1 | (2) | — | 4 | 0.04 | |||||
Gains and losses on investments (c) | — | — | (1) | 3 | 2 | 0.02 | |||||
Amortization expense | 54 | 1.2 | (14) | — | 40 | 0.35 | |||||
ETB | — | — | (7) | — | (7) | (0.07) | |||||
As adjusted | $ 739 | 15.8 % | $ (171) | $ 15 | $ 495 | $ 4.34 | |||||
(a) | For both the three and six months ended June 30, 2024 and 2023, the pre-tax impact represents costs primarily associated with workforce reductions and integration costs incurred in connection with further restructuring and integrating our business. The following table summarizes the pre-tax impact of restructuring and integration charges on our consolidated statements of operations: |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(dollars in millions) | |||||||
Cost of services | $ 1 | $ — | $ 14 | $ 10 | |||
Selling, general and administrative | 9 | 7 | 13 | 16 | |||
Operating income | $ 10 | $ 7 | $ 27 | $ 26 | |||
(b) | For the three and six months ended June 30, 2024, the pre-tax impact primarily represents a loss associated with the increase in the fair value of the contingent consideration accrual associated with previous acquisitions. For both the three and six months ended June 30, 2023, the pre-tax impact primarily represents the impairment of a corporate facility that was held for sale. The following table summarizes the pre-tax impact of these other items on our consolidated statements of operations: |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(dollars in millions) | |||||||
Selling, general and administrative | $ 1 | $ 6 | $ 1 | $ 6 | |||
Other operating expense, net | 3 | — | 6 | — | |||
Operating income | $ 4 | $ 6 | $ 7 | $ 6 | |||
(c) | For each of the three and six months ended June 30, 2024 and the six months ended June 30, 2023, the pre-tax impact represents gains and losses associated with changes in the carrying value of our strategic investments, recorded in equity in earnings of equity method investees, net of taxes. |
(d) | For restructuring and integration charges, gains and losses on investments, other items and amortization expense, income tax impacts, where recorded, were primarily calculated using combined statutory income tax rates of |
3) | The outlook for adjusted diluted EPS represents management's estimates for the full year 2024 before the impact of special items. Further impacts to earnings related to special items may occur throughout 2024. Additionally, the amount of ETB is dependent upon employee stock option exercises and our stock price, which are difficult to predict. The following table reconciles our 2024 outlook for diluted EPS under GAAP to our outlook for adjusted diluted EPS: |
Low | High | ||
Diluted EPS | $ 7.57 | $ 7.77 | |
Restructuring and integration charges (a) | 0.30 | 0.30 | |
Amortization expense (b) | 0.81 | 0.81 | |
Other (c) | 0.11 | 0.11 | |
Gains and losses on investments (d) | 0.05 | 0.05 | |
ETB | (0.04) | (0.04) | |
Adjusted diluted EPS | $ 8.80 | $ 9.00 |
(a) | Represents estimated pre-tax charges of |
(b) | Represents estimated pre-tax amortization expenses of |
(c) | Represents estimated pre-tax losses of |
(d) | Represents |
View original content to download multimedia:https://www.prnewswire.com/news-releases/quest-diagnostics-reports-second-quarter-2024-financial-results-raises-guidance-for-full-year-2024-302203238.html
SOURCE Quest Diagnostics
FAQ
What were Quest Diagnostics' Q2 2024 revenue and EPS results?
Has Quest Diagnostics (DGX) updated its full-year 2024 guidance?
What acquisitions did Quest Diagnostics announce in Q2 2024?
How did Quest Diagnostics' base business perform in Q2 2024?
