Quest Diagnostics IncorporatedNYSE: DGX

Quest Diagnostics (DGX) has reached its highest point in the last year, but can investors expect further growth? We will examine the company's fundamentals for insights.

Quest Diagnostics is seeing more lab tests, especially in genetic testing, due to an older population, and it provides a 2.0% dividend yield. The company's strategy for mergers and acquisitions, like buying LifeLabs, is designed to grow its presence and diversify its services, even though it may temporarily lower earnings per share. While there are risks from reimbursement cuts and labor market issues, Quest Diagnostics anticipates long-term growth from both its own efforts and acquisitions.

Quest Diagnostics announced impressive earnings for the third quarter, showing an 8.5% increase in revenue and a 3.6% rise in diluted earnings per share, surpassing analysts' predictions. The company has also updated its revenue forecast for 2024, anticipating strong growth from recent and future acquisitions, with expectations of double-digit revenue growth in the fourth quarter. Although there are concerns about economic challenges and inflation, I remain optimistic about DGX, changing my Buy Threshold to $150 and my Sell Target to $227.

Quest Diagnostics Incorporated (NYSE:DGX) will hold its Q3 2024 Earnings Conference Call on October 22, 2023, at 8:30 AM ET. The call will feature company leaders, including President and CEO Jim Davis, along with several financial analysts from various firms. This call is being recorded at the company's request.

Quest Diagnostics' results for the third quarter of 2024 show strong growth in their DIS business and positive impacts from recent acquisitions.

Quest Diagnostics (DGX) reported quarterly earnings of $2.30 per share, which is higher than the Zacks Consensus Estimate of $2.26 per share. This is an increase compared to earnings of $2.22 per share from the same period last year.

Quest Diagnostics, a laboratory operator, exceeded Wall Street's expectations for its third-quarter profit and revenue on Tuesday, thanks to strong demand for its diagnostic tests.

In the third quarter, Quest Diagnostics reported revenues of $2.49 billion, which is an increase of 8.5% compared to 2023. The diluted earnings per share (EPS) were $1.99, up 1.5% from last year, while the adjusted diluted EPS rose by 3.6% to $2.30. For the full year 2024, the company now anticipates revenues between $9.80 billion and $9.85 billion, with reported diluted EPS expected to be between $7.60 and $7.70.

Quest Diagnostics is a leading company in the expanding medical testing sector, providing steady earnings and increasing dividends with less risk. The company is supported by trends such as an aging population and a focus on preventive testing, which could lead to annual returns of 10% and dividend growth of 6-8%. After the Covid pandemic, DGX's financial situation has improved, with increases in revenue, earnings, and free cash flow, aided by share buybacks and smart acquisitions.