NEW YORK (GenomeWeb News) – Quest Diagnostics today reported that second-quarter revenues were essentially flat compared to a year ago.
For the three months ended June 30, revenues inched up .5 percent year over year to $1.91 billion, up from $1.90 billion, missing Wall Street estimates of $1.94 billion.
Clinical testing revenues during the quarter inched up .7 percent, Quest said.
SG&A spending was down 5 percent to $440.8 million from $462.8 million a year ago.
During the quarter, the firm recorded a profit of $177.7 million, or $1.11 per share, compared to $163.1 million, or $1.02 per share, a year ago,and below the $1.17 anticipated by Wall Street.
Quest said that profits were reduced by $.06 per share in the second quarter due to restructuring, integration, and CEO succession costs.
Last year, Quest announced a three-year, $500 million cost reduction initiative aimed at improving operational efficiency. Steve Rusckowski succeeded Surya Mohapatra as CEO during the recently completed quarter.
The company lowered its expected revenue growth for full-year 2012 to growth of between 1 percent and 2 percent, compared to a prior outlook of 2 percent to 2.5 percent growth. EPS estimates were unchanged at a range of between $4.45 and $4.60.
In a statement, Rusckowski said "We are accelerating our efforts to drive productivity improvements, reduce costs and restore revenue growth. And we remain focused on increasing shareholder returns through a combination of improved operating performance and disciplined capital deployment."
The company had $173.7 million in cash and cash equivalents as of June 30.
In Thursday morning trading, shares of Quest on the Nasdaq were down 4 percent to $60.41.