Quest Diagnostics Inc (DGX, Financial), a leading provider of diagnostic information services, released its financial results for the fourth quarter and full year ending December 31, 2024, on January 30, 2025. The company reported a 14.5% increase in fourth-quarter revenues to $2.62 billion and a 6.7% rise in full-year revenues to $9.87 billion. The reported diluted EPS for the fourth quarter was $1.95, a 14.7% increase from the previous year, with an adjusted diluted EPS of $2.23. For the full year, the reported diluted EPS was $7.69, up 2.7%, and the adjusted diluted EPS was $8.93. Quest Diagnostics also announced a 6.7% increase in its quarterly dividend to $0.80 per share.
Positive Highlights
- Fourth-quarter revenues increased by 14.5% to $2.62 billion.
- Full-year revenues rose by 6.7% to $9.87 billion.
- Reported diluted EPS for Q4 increased by 14.7% to $1.95.
- Adjusted diluted EPS for Q4 was $2.23, up 3.7%.
- Quarterly dividend increased by 6.7% to $0.80 per share.
- Completed eight acquisitions, including LifeLabs in Canada.
Negative Highlights
- Cash provided by operations decreased by 12.3% in Q4.
- Capital expenditures increased by 73.9% in Q4.
Financial Analyst Perspective
Quest Diagnostics' financial performance in 2024 demonstrates robust growth, particularly in the fourth quarter, with significant revenue and EPS increases. The company's strategic acquisitions and expansion of its advanced diagnostics portfolio have contributed to this growth. However, the decrease in cash provided by operations and the increase in capital expenditures may raise concerns about cash flow management. The company's guidance for 2025, with expected revenue growth and EPS increases, indicates confidence in continued strong performance.
Market Research Analyst Perspective
Quest Diagnostics' expansion through acquisitions and its focus on advanced diagnostics position the company well in the competitive healthcare market. The increase in dividend reflects a commitment to returning value to shareholders. The company's strategic partnerships and expansion into new geographies enhance its market reach and customer base. The guidance for 2025 suggests a positive outlook, driven by organic growth and the integration of recent acquisitions.
Frequently Asked Questions
Q: What was Quest Diagnostics' revenue for the fourth quarter of 2024?
A: The revenue for the fourth quarter of 2024 was $2.62 billion, a 14.5% increase from the previous year.
Q: How much did Quest Diagnostics increase its quarterly dividend?
A: Quest Diagnostics increased its quarterly dividend by 6.7% to $0.80 per share.
Q: What is the guidance for Quest Diagnostics' full-year 2025 revenue?
A: The company expects full-year 2025 revenue to be between $10.70 billion and $10.85 billion.
Q: How many acquisitions did Quest Diagnostics complete in 2024?
A: Quest Diagnostics completed eight acquisitions in 2024, including LifeLabs in Canada.
Read the original press release here.
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