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Quest Diagnostics shares rise premarket after guidance that blows past estimates

Quest Diagnostics Inc. said Monday it expects second-quarter revenue of about $1.83 billion, a decline of about 6% from the year-earlier period but well ahead of the $1.53 billion FactSet consensus. Testing volumes in the company’s base business, which excludes COVID-19 molecular and antibody testing, fell about 18%, the company said. It now expects per-share earnings of $1.33 to $1.36, compared with $1.51 a year ago. Adjusted EPS is expected to range from $1.39 to $1.42, compared with $1.73 in 2019 and a the FactSet consensus of 16 cents. The company will report second-quarter earnings on July 23. “The company continues to believe that the pandemic’s impact on its future operating results, cash flows and/or financial condition will be primarily driven by: the pandemic’s severity and duration; the pandemic’s impact on the U.S. healthcare system and the U.S. economy; and the timing, scope and effectiveness of federal, state and local governmental responses to the pandemic which are drivers beyond the company’s knowledge and control,” Quest said in a statement. Shares rose 2.4% premarket, and have gained 9.4% in the year to date, while the S&P 500 has fallen 1.4%.
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