With a market capitalization of approximately $20.6 billion, Quest Diagnostics Incorporated (DGX), situated in Secaucus, New Jersey, is a leading provider of diagnostic testing services both in the United States and globally. The firm specializes in offering a wide array of diagnostic information services, including routine and advanced clinical tests, non-routine testing, anatomic pathology analyses, and several other diagnostic services.
The healthcare giant is preparing to release its third-quarter earnings before markets open on Tuesday, October 21. Analysts forecast an adjusted earnings figure of $2.51 per share for DGX, reflecting a 9.1% increase from the $2.30 recorded in the same quarter last year. The company has a robust track record of exceeding analysts’ earnings expectations, achieving this feat in each of the past four quarters.
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For the entirety of fiscal 2025, projections suggest that DGX will report an adjusted EPS of $9.74, marking a 9.1% increase from the $8.93 anticipated for 2024. Furthermore, for fiscal 2026, a year-over-year growth of 6.8% is expected, translating to $10.40 per share.
The stock price of DGX has increased by 24.5% over the past year, significantly outpacing the 7% decline of the Healthcare Select Sector SPDR Fund (XLV) and the S&P 500 Index’s ($SPX) increase of 13.4% during the same period.
After announcing robust Q2 earnings on July 22, the share price of Quest Diagnostics surged 7.1% in after-hours trading. The growth was attributed to increased organic demand for its innovative clinical solutions and revenue contributions from acquisitions, leading to a remarkable 15.2% year-over-year increase in net revenues to $2.8 billion, surpassing expectations by 1.5%. Moreover, the company achieved productivity enhancements through the implementation of automation and digital technologies within its operations. DGX reported an adjusted EPS increase of 11.5% to $2.62, exceeding consensus estimates by nearly 2%.
Analysts maintain a positive outlook on DGX’s long-term potential, with a consensus rating categorized as “Moderate Buy.” Out of the 18 analysts covering the company, eight recommend “Strong Buys” while ten advocate for “Holds.” As of the time of writing, the stock is trading just below its average target price of $189.94.
On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data presented herein are for informational purposes only. This article originally appeared on Barchart.com
