DGX Earnings Prediction
The chart below shows how DGX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DGX sees a -1.48% change in stock price 10 days leading up to the earnings, and a +1.06% change 10 days following the report. On the earnings day itself, the stock moves by +0.82%. This data can give you a slight idea of what to expect for the next quarter's release.
DGX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.62B
14.55%
5.35%
Gross Margin
31.71%
2.19%
0.63%
Operating Margin
14.19%
12.35%
0.00%
Net Margin
9.00%
0.45%
-5.56%
EPS
1.90
11.76%
-4.52%
No Data Available
DGX Earnings Analysis
Quest Diagnostics Inc Corporation (DGX.N) Earnings Conference Call
Positive
Revenue Increase Highlights: In Q4, Quest Diagnostics achieved consolidated revenues of $2.62 billion, reflecting a 14.5% increase year-over-year, with organic revenues growing by 4.8%.
Acquisition Strategy and Growth: The company completed 8 acquisitions in 2024, including LifeLabs in Canada, which contributed significantly to revenue growth and expanded geographic reach.
Consumer Testing Revenue Surge: Consumer initiated testing revenues surged nearly 50% in Q4, totaling approximately $60 million, and reached nearly $100 million for the full year 2024.
Q4 Operating Income Increase: Operating income for Q4 was reported at $361 million, representing 13.8% of revenues, an increase from $267 million or 11.7% of revenues in the prior year, showcasing improved profitability.
Earnings Per Share Growth: Adjusted EPS for Q4 was $2.23, up from $2.15 a year ago, indicating strong earnings growth despite challenges from higher interest expenses and tax rates.
Negative
Operating Income Increase: Reported operating income in the 4th quarter was $361,000,000 or 13.8 percent of revenues compared to $267,000,000 or 11.7 percent of revenues last year, indicating a significant increase in operating income but still reflecting challenges in margin expansion due to weather impacts and wage increases.
EPS Impact Analysis: Adjusted EPS in the 4th quarter was impacted by higher interest expense and a higher tax rate versus the prior year, with an estimated EPS impact of weather at approximately $0.06, highlighting external factors affecting profitability.
Revenue Generation Efficiency Pressure: Total revenue per requisition was up only 0.2% versus the prior year, primarily offset by the impact of the LifeLabs acquisition, which carries a lower revenue per requisition, indicating pressure on revenue generation efficiency.
Acquisition Pace Moderation: The company expects to moderate its pace of acquisitions in 2025, suggesting potential limitations on growth opportunities and revenue contributions from new acquisitions compared to the previous year.
Margin Expansion Challenges: Operating margin is expected to expand in 2025, but the contribution from lower-margin acquisitions like LifeLabs will initially drag on overall margin performance, indicating challenges in achieving desired profitability levels.
DGX FAQs
How does DGX typically perform around its earnings report dates?
Is Quest Diagnostics Inc (DGX) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
DGX Earning Call Sentiment
Earnings call transcript: Quest Diagnostics Q4 2024 beats EPS forecast
DGX.N
-1.1%Positive
The earnings call reveals strong financial performance, with significant revenue growth and profitability improvements. Despite some uncertainties, such as weather impacts and market volatility, the company's strategic acquisitions and focus on operational excellence provide a positive outlook. The Q&A session indicated confidence in margin expansion and market share gains. While there was no explicit shareholder return plan, the guidance suggests earnings growth focus. Overall, the strong financial metrics and optimistic guidance outweigh the concerns, predicting a positive stock price movement over the next two weeks.
