In This Article:
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Consolidated Revenue: $2.65 billion, up 12.1% year-over-year.
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Organic Revenue Growth: 2.4% increase.
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Diagnostic Information Services Revenue: Up 12.7% compared to the prior year.
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Total Volume Growth: Increased 12.4% versus the first quarter of 2024.
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Organic Volume Change: Down 0.9%.
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Revenue per Requisition: Up 0.3% year-over-year; organic basis up 3.6%.
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Reported Operating Income: $346 million or 13% of revenues.
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Adjusted Operating Income: $406 million or 15.3% of revenues.
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Reported EPS: $1.94, compared to $1.72 a year ago.
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Adjusted EPS: $2.21, compared to $2.04 the prior year.
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Cash from Operations: $314 million, compared to $154 million in the prior year.
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Full Year 2025 Revenue Guidance: Expected between $10.7 billion and $10.85 billion.
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Full Year 2025 Reported EPS Guidance: Expected to be in the range of $8.62 to $8.87.
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Full Year 2025 Adjusted EPS Guidance: Expected to remain in the range of $9.55 to $9.80.
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Full Year 2025 Cash from Operations Guidance: Approximately $1.5 billion.
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Full Year 2025 Capital Expenditures Guidance: Approximately $500 million.
Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Quest Diagnostics Inc (NYSE:DGX) reported strong revenue growth of approximately 12% in the first quarter, with nearly 2.5% in organic growth.
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The company reaffirmed its revenue and adjusted EPS guidance for the full year 2025, indicating confidence in its financial outlook.
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Quest Diagnostics Inc (NYSE:DGX) expanded its use of automation, robotics, and AI to improve quality, customer and employee experiences, and productivity.
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The company was named as the first independent national lab to be selected to the Optum Health Preferred Lab Network, enhancing its reputation and partnerships.
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Quest Diagnostics Inc (NYSE:DGX) saw impressive uptake of its novel PFAS forever chemicals test, demonstrating successful innovation and market adoption.
Negative Points
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Organic volume growth was down by 0.9%, impacted by weather and one less day in the quarter compared to the prior year.
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Higher interest expenses impacted EPS in the first quarter, with reported EPS at $1.94 compared to $1.72 a year ago.
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The company faces potential challenges from tariffs, although it believes the impact is manageable under current regulations.
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There are ongoing labor strikes at LifeLabs in British Columbia, which could impact operations and financial performance.
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Quest Diagnostics Inc (NYSE:DGX) continues to face challenges in the health system pricing landscape, which remains the most difficult area to manage.