Here's How Quest Diagnostics Is Placed Ahead of Q3 Earnings

Quest Diagnostics DGX is set to release its third-quarter 2025 results on Oct. 21, before the market opens.The renowned diagnostics provider posted adjusted earnings per share (EPS) of $2.62 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 1.95%. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 2.09%.DGX’s Q3 EstimatesFor the third quarter of 2025, the Zacks Consensus Estimate for Quest Diagnostics’ revenues is pegged at $2.72 billion, indicating an increase of 9.3% from the year-ago reported figure.The Zacks Consensus Estimate for the company’s third-quarter 2025 EPS suggests a 9.1% rise to $2.51.Estimate Revision Trend Ahead of DGX’s Q3 EarningsEstimates for Quest Diagnostics’ Q3 earnings have remained stable in the past 30 days.Here’s a brief review of the company’s performance leading up to this announcement.Factors Likely to Influence DGX’s Q3 ResultsQuest Diagnostics’ core Diagnostics Information Services (“DIS”) business is expected to have delivered strong revenues in the third quarter of 2025, driven by its physician and hospital channels. The company’s solid commercial execution is likely to have led physicians to order more tests per requisition, sustaining the demand momentum for its clinical solutions. Similar to the past quarters, DGX is expected to have benefited from large enterprise accounts, mainly in functional medicine — a rapidly growing, preventative health care segment.Quest Diagnostics is also likely to have begun providing laboratory services under its partnership with Fresenius Medical Care, supporting more than 200,000 kidney dialysis patients nationwide. Together, these developments may have favored physician channel revenues in the third quarter.Quest Diagnostics Incorporated Price and EPS Surprise Quest Diagnostics Incorporated price-eps-surprise | Quest Diagnostics Incorporated QuoteIn the second quarter, M&A contributed 10% growth, with 8% coming from LifeLabs, a 2024 addition that expanded its foothold in Canada. We expect the positive momentum from acquisitions to have extended into the third quarter as well. In August, DGX completed the acquisition of select clinical testing assets of Fresenius Medical Care's wholly owned Spectra Laboratories. Our model assumes a 7.1% acquired contribution to DIS revenues in the to-be-reported quarter. Meanwhile, Collaborative Lab Solutions may have driven growth in the hospital channel. Together with reference testing and Outreach Lab acquisitions, Quest Diagnostics is likely to have continued to offer hospitals strategic ways to access top-tier diagnostic innovations without having to maintain an in-house lab.An enhanced questhealth.com platform is likely to have contributed to strong third-quarter revenues, thanks to its wider range of offerings. Further, partnerships with major consumer and wellness brands, which rely on the company’s high-quality lab testing, broad access and flexible technology integrations, are expected to have complemented growth.In Advanced Diagnostics, DGX is expected to have generated robust revenues across several clinical areas, including Advanced Cardiometabolic. Growth in Brain Health may have been led by AD-detect blood tests for assessing Alzheimer's disease risk. In oncology, Quest Diagnostics is likely to have continued to ramp up the commercial outreach to drive the market adoption of the Haystack MRD test.  In the third quarter, the company also launched a molecular test for diagnosing Oropouche virus, developed under a CDC contract and available with a prescription from a provider for clinical purposes. This is expected to have positively impacted DGX’s revenues.Going by our model, the company’s DIS revenues are likely to increase 8.8% year over year in the third quarter of 2025.In terms of operational excellence, Quest Diagnostics may have continued to expand the use of automation, robotics, and AI to improve quality, customer and employee experiences and productivity. Building on trends in recent quarters, employee retention across the company’s operations and service lines may have further improved. Our model projects the company’s operating income (non-GAAP basis) to increase 21.4% year over year in the third quarter of 2025. What Our Model Unveils for DGXPer our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is the case here, as you can see.Earnings ESP: Quest Diagnostics has an Earnings ESP of +0.49%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank #3.Other Top MedTech PicksHere are some other medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this time:Exact Sciences EXAS has an Earnings ESP of +32.65% and a Zacks Rank #1. The company is slated to release third-quarter 2025 results on Nov. 3.EXAS’ earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 329.87%. The Zacks Consensus Estimate for the company’s third-quarter EPS is expected to increase 147.6% from the year-ago quarter figure.ANI Pharmaceuticals ANIP has an Earnings ESP of +1.15% and a Zacks Rank #2. The company is expected to release third-quarter 2025 results soon. ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%. The Zacks Consensus Estimate for ANIP’s third-quarter EPS is expected to surge 29.9% from the year-ago reported figure.IDEXX Laboratories IDXX has an Earnings ESP of +0.23% and a Zacks Rank #2. The company is slated to release third-quarter 2025 results on Nov. 3.IDXX’s earnings topped estimates in each of the trailing four quarters, the average surprise being 6.08%. The Zacks Consensus Estimate for the company’s third-quarter EPS is anticipated to increase 12.1% from the year-ago quarter figure.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report IDEXX Laboratories, Inc. (IDXX): Free Stock Analysis Report ANI Pharmaceuticals, Inc. (ANIP): Free Stock Analysis Report Exact Sciences Corporation (EXAS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks