Earnings Preview: What to Expect From Quest Diagnostics' Report

Quest Diagnostics Incorporated (DGX), headquartered in Secaucus, New Jersey, provides diagnostic testing and services. Valued at $17.2 billion by market cap, the company operates a national network of full-service laboratories, rapid response laboratories, and patient service centers. DGX offers esoteric, routine medical, drugs of abuse, and non-hospital-based anatomic pathology testing services. The leading provider of diagnostic testing and services is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Thursday, Jan. 30. 

Ahead of the event, analysts expect DGX to report a profit of $2.19 per share on a diluted basis, up 1.9% from $2.15 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. 

For the full year, analysts expect DGX to report EPS of $8.90, up 2.2% from $8.71 in fiscal 2023. Its EPS is expected to rise 9.1% year over year to $9.71 in fiscal 2025. 

DGX stock has underperformed the S&P 500’s ($SPX) 22.1% gains over the past 52 weeks, with shares up 13.1% during this period. However, it outperformed the Health Care Select Sector SPDR Fund’s (XLV) marginal losses over the same time frame.

On Oct. 22, DGX shares closed up more than 6% after reporting its Q3 results. Its adjusted EPS of $2.30 topped Wall Street expectations of $2.26. The company’s revenue was $2.5 billion, beating Wall Street forecasts of $2.4 billion. DGX expects full-year adjusted EPS in the range of $8.85 to $8.95, and expects revenue in the range of $9.8 billion to $9.85 billion.

Analysts’ consensus opinion on DGX stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 16 analysts covering the stock, nine advise a “Strong Buy” rating, and seven give a “Hold.” DGX’s average analyst price target is $174.69, indicating a potential upside of 14.2% from the current levels.