Quest Diagnostics
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Quest Diagnostics met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and earnings per share grew significantly.
Gross margins expanded, operating margins were steady, and net margins increased.
Revenue details
Quest Diagnostics tallied revenue of $1.9 billion. The 22 analysts polled by S&P Capital IQ wanted to see revenue of $1.9 billion. Sales were 3.0% higher than the prior-year quarter's $1.8 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS details
Non-GAAP EPS came in at $1.23. The 25 earnings estimates compiled by S&P Capital IQ predicted $1.06 per share on the same basis. GAAP EPS of $1.19 for Q4 were 23% higher than the prior-year quarter's $0.96 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 42.7%, 180 basis points better than the prior-year quarter. Operating margin was 17.3%, about the same as the prior-year quarter. Net margin was 10.1%, 100 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.9 billion. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $7.7 billion. The average EPS estimate is $4.66.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 545 members out of 580 rating the stock outperform, and 35 members rating it underperform. Among 188 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 183 give Quest Diagnostics a green thumbs-up, and five 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 $59.25.
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