Quest Diagnostics Beats Q2 Earnings & Revenue Estimates, Stock Rises

Quest Diagnostics Inc.’s DGX second-quarter 2025 adjusted earnings per share (EPS) of $2.62 beat the Zacks Consensus Estimate by 1.9%. The metric also exceeded the year-ago adjusted figure by 11.5%.Certain one-time expenses, like the ones related to amortization expenses, certain restructuring and integration charges, other expenses and excess tax benefits associated with stock-based compensations, were excluded from the quarter’s adjusted figures. GAAP earnings came in at $2.47 per share, up 21.7% from last year’s comparable figure.DGX shares have gained nearly 3.2% in pre-market trading following the earnings report.DGX’s Q2 Revenues in DetailRevenues reported in the second quarter rose 15.2% year over year to $2.76 billion. The metric surpassed the Zacks Consensus Estimate by 1.5%.Diagnostic Information Services revenues in the quarter were up 15.7% on a year-over-year basis to $2.70 billion. This figure also surpassed our model’s projection of $2.65 billion for the second quarter.Quest Diagnostics Incorporated Price, Consensus and EPS Surprise Quest Diagnostics Incorporated price-consensus-eps-surprise-chart | Quest Diagnostics Incorporated QuoteVolumes (measured by the number of requisitions) were up 16.3% year over year in the second quarter. Revenue per requisition decreased 0.4% year over year.DGX’s Q2 Margin PerformanceThe cost of services during the reported quarter was $1.82 billion, up 14.1% year over year. The gross profit came in at $943 million, up 17.3% year over year. The gross margin was 34.2%, up 61 basis points (bps).SG&A expenses were $486 million in the quarter under review, up 16.8% from the second quarter of 2024. The adjusted operating margin of 14.6% represented a 37 bps expansion year over year.DGX’s Financial PositionQuest Diagnostics exited the second quarter of 2025 with cash and cash equivalents of $319 million compared with $188 million at the end of the first quarter. The cumulative net cash provided by operating activities at the end of the second quarter of 2025 was $858 million compared with $514 million at the end of the same period last year.The company has a five-year annualized dividend growth rate of 7.31%.DGX’s 2025 GuidanceQuest Diagnostics updated its full-year 2025 outlook. Revenues are expected in the range of $10.80 billion-$10.92 billion (previously $10.70-$10.85 billion), which indicates a year-over-year increase of 9.4%-10.6%. The Zacks Consensus Estimate is pegged at $10.79 billion.Adjusted EPS is expected in the range of $9.63-$9.83 (earlier $9.55-$9.80). The Zacks Consensus Estimate for the metric is pegged at $9.70.Our View on DGX StockQuest Diagnostics ended the second quarter of 2025 with both earnings and revenues beating estimates. The company’s ongoing strategic execution drove the solid performance. Strong demand for DGX’s clinical solutions and expanded business from enterprise accounts supported growth from acquisitions. Quest Diagnostics also realized productivity gains from continuing to deploy automation and digital technologies across its businesses. The expansion of both margins is highly encouraging. The revised upbeat outlook for the year further adds to the stock’s appeal.DGX’s Zacks Rank & Key PicksQuest Diagnostics currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader medical space are Cencora COR, Veeva Systems VEEV and Resmed RMD.Cencora, carrying a Zacks Rank #2 (Buy), reported second-quarter fiscal 2025 adjusted EPS of $4.42, which beat the Zacks Consensus Estimate by 8.3%. Revenues of $75.45 billion surpassed the consensus mark by 0.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.COR has a historical average earnings growth rate of 13.8% compared with the industry’s 1% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 6%.Veeva Systems, carrying a Zacks Rank #2 at present, posted first-quarter fiscal 2026 adjusted EPS of $1.97, exceeding the Zacks Consensus Estimate by 13.2%. Revenues of $759 million surpassed the Zacks Consensus Estimate by 4.3%.VEEV has an estimated long-term earnings growth rate of 23.3% compared with the industry’s 17.9% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10%.Resmed, currently carrying a Zacks Rank #2, reported third-quarter fiscal 2025 adjusted EPS of $2.30, which surpassed the Zacks Consensus Estimate by 0.4%. Revenues of $1.29 billion topped the Zacks Consensus Estimate by 0.5%.RMD has an estimated long-term earnings growth rate of 15.3% compared with the industry’s 14% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 4.2%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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 ResMed Inc. (RMD): Free Stock Analysis Report Cencora, Inc. (COR): Free Stock Analysis Report Veeva Systems Inc. (VEEV): 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