The 10-second takeaway
For the quarter ended March 31 (Q1), Quest Diagnostics beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased.
Gross margin expanded, operating margin were steady, and net margin grew.
Quest Diagnostics logged revenue of $1.94 billion. The 19 analysts polled by S&P Capital IQ anticipated a top line of $1.88 billion on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $1.82 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.07. The 22 earnings estimates compiled by S&P Capital IQ anticipated $1.01 per share on the same basis. GAAP EPS were $0.99 for Q1 against -$0.33 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.3%, 200 basis points better than the prior-year quarter. Operating margin was 15.5%, about the same as the prior-year quarter. Net margin was 8.2%, 1,120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.94 billion. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $7.69 billion. The average EPS estimate is $4.56.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 544 members out of 580 rating the stock outperform, and 36 members rating it underperform. Among 175 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 168 give Quest Diagnostics a green thumbs-up, and seven 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 $61.53.
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