Examining the Future: Quest Diagnostics's Earnings Outlook

Quest Diagnostics DGX is preparing to release its quarterly earnings on Tuesday, 2025-04-22. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Quest Diagnostics to report an earnings per share (EPS) of $2.16.

The market awaits Quest Diagnostics's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Past Earnings Performance

During the last quarter, the company reported an EPS beat by $0.05, leading to a 6.83% drop in the share price on the subsequent day.

Here's a look at Quest Diagnostics's past performance and the resulting price change:

Quest Diagnostics Share Price Analysis

Shares of Quest Diagnostics were trading at $163.8 as of April 18. Over the last 52-week period, shares are up 11567.39%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Quest Diagnostics

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Quest Diagnostics.

Analysts have given Quest Diagnostics a total of 10 ratings, with the consensus rating being Neutral. The average one-year price target is $182.5, indicating a potential 11.42% upside.

Peer Ratings Overview

The following analysis focuses on the analyst ratings and average 1-year price targets of Labcorp Hldgs, DaVita and Chemed, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Labcorp Hldgs, with an average 1-year price target of $273.0, suggesting a potential 66.67% upside.
• Analysts currently favor an Neutral trajectory for DaVita, with an average 1-year price target of $169.0, suggesting a potential 3.17% upside.
• Analysts currently favor an Outperform trajectory for Chemed, with an average 1-year price target of $667.0, suggesting a potential 307.2% upside.

Peer Analysis Summary

Within the peer analysis summary, vital metrics for Labcorp Hldgs, DaVita and Chemed are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Quest Diagnostics ranks in the middle for Consensus rating. It is at the bottom for Revenue Growth and Gross Profit, but at the top for Return on Equity among its peers.

Get to Know Quest Diagnostics Better

Quest Diagnostics Inc is a leading independent provider of diagnostic testing, information, and services in the us. The company generates over 95% of its revenue through clinical testing, anatomic pathology, esoteric testing, and substance abuse testing with specimens collected at its national network of roughly 2,300 patient service centers, as well as multiple doctors offices and hospitals. The firm also runs a much smaller diagnostic solutions segment that provides clinical trials testing, risk-assessment services, and information technology solutions.

Understanding the Numbers: Quest Diagnostics's Finances

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Quest Diagnostics's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 14.55%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Quest Diagnostics's net margin is impressive, surpassing industry averages. With a net margin of 8.39%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Quest Diagnostics's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.24%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Quest Diagnostics's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.36%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.05.

To track all earnings releases for Quest Diagnostics visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.