Rare screenings lifts Quest 1Q profit 20 percent

Medical lab operator Quest Diagnostics Inc. said Tuesday its first-quarter profit climbed 20 percent, as it performed greater numbers of rare screenings.

The company reported a profit of $167.1 million, or 88 cents per share, up from $139.6 million, or 71 cents per share, in the first quarter of 2008.

Earnings from continuing operations totaled 89 cents per share.

Revenue rose 1 percent to $1.81 billion from $1.78 billion. According to Thomson Reuters, analysts expected a profit of 82 cents per share and $1.81 billion in revenue, on average.

Quest also raised its annual profit forecast, and in afternoon trading, it shares advanced $2.22, or 4.4 percent, to $52.72.

The company said overall clinical testing revenue increased 2 percent, and it ran more tests for "esoteric" ailments like cancer. Testing volume fell 2 percent, but average revenue per test rose 4 percent. Drug screens for employers fell 25 percent, which the company said was due to decreased hiring trends.