Quest Diagnostics (NYS: DGX) reported earnings on July 18. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Quest Diagnostics met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted. GAAP earnings per share contracted.
Margins dropped across the board.
Quest Diagnostics reported revenue of $1.82 billion. The 19 analysts polled by S&P Capital IQ looked for sales of $1.84 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.06. The 22 earnings estimates compiled by S&P Capital IQ anticipated $1.09 per share. Non-GAAP EPS of $1.06 for Q2 were 9.4% lower than the prior-year quarter's $1.17 per share. GAAP EPS of $1.07 for Q2 were 3.6% lower than the prior-year quarter's $1.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.8%, 220 basis points worse than the prior-year quarter. Operating margin was 15.9%, 250 basis points worse than the prior-year quarter. Net margin was 9.1%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.85 billion. On the bottom line, the average EPS estimate is $1.20.
Next year's average estimate for revenue is $7.31 billion. The average EPS estimate is $4.35.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 556 members out of 592 rating the stock outperform, and 36 members rating it underperform. Among 195 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 184 give Quest Diagnostics a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quest Diagnostics is hold, with an average price target of $60.44.
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The article Quest Diagnostics Meets on Revenues, Misses on EPS originally appeared on Fool.com.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Quest Diagnostics. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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