Quest Diagnostics
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Quest Diagnostics missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted.
Margins shrank across the board.
Revenue details
Quest Diagnostics recorded revenue of $1.85 billion. The 17 analysts polled by S&P Capital IQ looked for a top line of $1.91 billion on the same basis. GAAP reported sales were 2.9% lower than the prior-year quarter's $1.91 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.18. The 22 earnings estimates compiled by S&P Capital IQ averaged $1.18 per share. GAAP EPS of $1.01 for Q3 were 6.5% lower than the prior-year quarter's $1.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 41.1%, 120 basis points worse than the prior-year quarter. Operating margin was 16.7%, 160 basis points worse than the prior-year quarter. Net margin was 8.8%, 20 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.85 billion. On the bottom line, the average EPS estimate is $1.11.
Next year's average estimate for revenue is $7.55 billion. The average EPS estimate is $4.51.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 540 members out of 573 rating the stock outperform, and 33 members rating it underperform. Among 167 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 158 give Quest Diagnostics a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quest Diagnostics is hold, with an average price target of $62.16.
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