Quest Diagnostics Earnings: Here’s Why Investors are Selling Shares Now
Quest Diagnostics Inc. (NYSE:DGX) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.91%.
Quest Diagnostics Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 9.4% to $1.06 in the quarter versus EPS of $1.17 in the year-earlier quarter.
Revenue: Decreased 4.81% to $1.82 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Quest Diagnostics Inc. reported adjusted EPS income of $1.06 per share. By that measure, the company missed the mean analyst estimate of $1.09. It missed the average revenue estimate of $1.84 billion.
Quoting Management: Steve Rusckowski, President and CEO, commented: “As expected, revenues and earnings improved from first quarter levels, but were down versus the prior year. We saw continued revenue softness in the second quarter compared to the prior year due to lower healthcare utilization and reductions in reimbursement. As we’ve previously shared, 2013 is a building year; we are making good progress executing our five point strategy; and we expect stronger performance in the second half. The improvement in the second half is expected to be driven by: easier comparisons; the impact of acquisitions; the benefit of investments we have made to drive growth; and the excellent progress we’re making with our Invigorate cost-reduction initiative.”
Key Stats (on next page)…