Quest Diagnostics Set to Reveal Q4 Earnings with Positive Growth Projections
Analysts Anticipate Steady Increase in Earnings per Share
Quest Diagnostics Incorporated (DGX), based in Secaucus, New Jersey, offers essential diagnostic testing and services. With a market capitalization of $17.2 billion, the company runs a nationwide network that includes full-service labs, rapid response facilities, and patient service centers. DGX provides a variety of testing services, including esoteric, routine medical, drugs of abuse, and non-hospital-based anatomic pathology tests. The leading diagnostic services provider will announce its fiscal fourth-quarter earnings for 2024 on Thursday, January 30, before the market opens.
Analysts predict that DGX will report earnings of $2.19 per share on a diluted basis, which reflects a 1.9% increase from the previous year’s $2.15 per share. DGX has demonstrated a strong track record by exceeding Wall Street’s earnings per share (EPS) estimates in its last four quarterly reports.
For the entire fiscal year, analysts expect DGX to show an EPS of $8.90, marking a 2.2% improvement from $8.71 in fiscal 2023. Looking ahead, EPS is projected to grow by 9.1% to reach $9.71 in fiscal 2025.
Over the past 52 weeks, DGX stock has not performed as strongly as the S&P 500, which has risen by 22.1%. During the same period, DGX shares increased by only 13.1%. However, the company did outperform the marginal losses of the Health Care Select Sector SPDR Fund (XLV).
On October 22, DGX shares rallied more than 6% following the release of its Q3 results. The company reported an adjusted EPS of $2.30, surpassing Wall Street’s expectation of $2.26. Additionally, its revenue reached $2.5 billion, exceeding forecasts of $2.4 billion. DGX anticipates an adjusted EPS for the entire year between $8.85 to $8.95, with total revenue projected between $9.8 billion and $9.85 billion.
The consensus among analysts regarding DGX stock is moderately optimistic, assigning a “Moderate Buy” rating overall. Out of 16 analysts covering the stock, nine recommend a “Strong Buy” while seven suggest a “Hold.” The average price target for DGX sits at $174.69, indicating a potential upside of 14.2% from current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.