The 10-second takeaway
For the quarter ended June 30 (Q2), Quest Diagnostics missed slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share expanded.
Gross margins shrank, operating margins dropped, net margins increased.
Quest Diagnostics booked revenue of $1.91 billion. The 19 analysts polled by S&P Capital IQ predicted revenue of $1.94 billion on the same basis. GAAP reported sales were 0.2% higher than the prior-year quarter's $1.90 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.17. The 22 earnings estimates compiled by S&P Capital IQ predicted $1.17 per share. GAAP EPS of $1.11 for Q2 were 8.8% higher than the prior-year quarter's $1.02 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.8%, 20 basis points worse than the prior-year quarter. Operating margin was 17.6%, 10 basis points worse than the prior-year quarter. Net margin was 9.3%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.92 billion. On the bottom line, the average EPS estimate is $1.19.
Next year's average estimate for revenue is $7.68 billion. The average EPS estimate is $4.57.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 546 members out of 578 rating the stock outperform, and 33 members rating it underperform. Among 174 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 167 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 $62.63.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Quest Diagnostics. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.