Sohini Mondal
2 min read
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Valued at a market cap of $20.1 billion, Quest Diagnostics Incorporated (DGX) is a leading provider of diagnostic testing, information, and services in the United States and internationally. The company serves a wide range of healthcare providers through its two main business groups: Diagnostic Information Services and Diagnostic Solutions. The Secaucus, New Jersey-based company is slated to announce its fiscal Q2 2025 earnings results before the market opens on Tuesday, Jul. 22.
Ahead of the event, analysts are expecting DGX to report an adjusted EPS of $2.56, up 8.9% from $2.35 in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in the past four quarterly reports. In Q1 2025, Quest Diagnostics exceeded the consensus adjusted EPS estimate by 2.8%.
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For fiscal 2025, analysts expect the medical laboratory operator to report adjusted EPS of $9.70, representing an 8.6% increase from $8.93 in fiscal 2024. Looking forward to fiscal 2026, adjusted EPS is expected to grow 8.3% year-over-year to $10.50.
Shares of DGX have surged 31.2% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 13.6% rise and the Health Care Select Sector SPDR Fund's (XLV) 7.2% decline over the same period.
On Apr. 22, shares of Quest Diagnostics jumped 6.8% after the release of its Q1 2025 earnings report. The company posted adjusted EPS of $2.21 and revenue of $2.7 billion, surpassing expectations. The strong performance was driven by increased demand for diagnostic tests, particularly among older patients who rescheduled postponed non-urgent procedures. Strategic hospital laboratory partnerships, along with a 12% year-over-year sales increase, also boosted investor confidence. Additionally, Quest reaffirmed its full-year profit guidance of $9.55 per share to $9.80 per share.
Analysts' consensus rating on Quest Diagnostics stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, nine recommend a "Strong Buy” and eight give a "Hold" rating. This configuration is slightly more bullish than three months ago, with eight analysts suggesting a "Strong Buy." As of writing, DGX is trading below the average analyst price target of $186.59.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
