Skip to main content
Premium Trial:

Request an Annual Quote

Quest Diagnostics Posts 6 Percent Revenue Increase for Q3

NEW YORK (GenomeWeb) – Quest Diagnostics today reported that its third quarter revenues climbed 6 percent year over year as the firm beat analysts' expectations on the top and bottom line.

The clinical lab and diagnostics information services firm reported total revenues of $1.90 billion for the three months ended Sept. 30, up from $1.79 billion for the third quarter of 2013 and above consensus analysts' estimate of $1.87 billion.

It said that diagnostic information services revenue was up around 7 percent year over year, while test volume increased around 8 percent. Acquisitions contributed approximately 7 percent to revenues in the quarter and reduced revenue per requisition by approximately 1 percent.

Quest posted net income of $129 million, or $.88 per share, compared to $405 million, or $2.68 per share, in Q3 2013. Its EPS on an adjusted basis was $1.10, beating the consensus Wall Street estimate of 1.08.

Last year's Q3 included a one-time approximately $300 million gain, or $1.97 per share, on the sale of Quest's IP royalty rights for cancer drug ibrutinib.

Quest's SG&A spending increased 5 percent to $446 million from $423 million. The firm also recorded $24 million in amortization of intangible assets compared to $20 million in Q3 2013.

Quest finished the quarter with $170 million in cash and cash equivalents.

The company said that it expects FY 2014 revenue growth to be around 3.5 percent versus its previous guidance of between 2.5 percent and 3.5 percent. It also narrowed its guidance for adjusted EPS to a range of $4.03 to $4.07 from a previous range of $4.00 to $4.10. Analysts, on average, expect EPS of $4.05.

Steve Rusckowski, president and CEO of Quest, said the firm "continued to see improvements in underlying trends in pricing, volume, and revenue."

The Scan

Positive Framing of Genetic Studies Can Spark Mistrust Among Underrepresented Groups

Researchers in Human Genetics and Genomics Advances report that how researchers describe genomic studies may alienate potential participants.

Small Study of Gene Editing to Treat Sickle Cell Disease

In a Novartis-sponsored study in the New England Journal of Medicine, researchers found that a CRISPR-Cas9-based treatment targeting promoters of genes encoding fetal hemoglobin could reduce disease symptoms.

Gut Microbiome Changes Appear in Infants Before They Develop Eczema, Study Finds

Researchers report in mSystems that infants experienced an enrichment in Clostridium sensu stricto 1 and Finegoldia and a depletion of Bacteroides before developing eczema.

Acute Myeloid Leukemia Treatment Specificity Enhanced With Stem Cell Editing

A study in Nature suggests epitope editing in donor stem cells prior to bone marrow transplants can stave off toxicity when targeting acute myeloid leukemia with immunotherapy.