Quest Diagnostics Backs FY16 Forecast; Raises FY17 Revenue Growth View

(RTTNews) - Quest Diagnostics Inc. (DGX) On Friday reiterated its expected 2016 results. The company continues to expect adjusted earnings per share excluding amortization to be between $5.07 and $5.12. Revenues are still expected to be approximately $7.51 billion, an increase of 2.5% over 2015 on an equivalent basis. This is compared to $7.32 billion last year.

On average, analysts polled by Thomson Reuters expect earnings of $5.10 per share on revenues of $7.51 billion. Analysts' estimates typically exclude special items.

Further, the company has raised its outlook for revenue growth for the period 2017-2020 to be 3-5%. Earnings for the same period are expected to grow faster than revenues in the mid-to-high single digit range.

Additionally, the company has raised its common stock dividend by 12.5% to an annual rate of $1.80 per share.

Steve Rusckowski, President and Chief Executive Officer, said, "Based on Quest's momentum since the company's 2014 Investor Day, we are raising our outlook for revenue growth beyond 2016. The earnings outlook for 2017-2020 of mid-to-high single digit growth is realistic and achievable. Our increasing number of partnerships with other health care leaders are creating promising opportunities for top and bottom line growth while improving the patient experience and reducing the overall cost of care."

At a meeting with analysts and investors at its Investor Day today, the company will discuss its new two-point strategy to generate shareholder value by accelerating growth and driving operational excellence.