Quest Diagnostics Q2 Profit Decreases - Quick Facts

(RTTNews) - Quest Diagnostics Incorporated (DGX) reported second-quarter income from continuing operations of $153 million or $0.99 per share, compared to $175 million or $1.09 per share, last year. Adjusted income from continuing operations was $164 million or $1.06 per share, compared to $185 million or $1.15 per share, prior year.

Net income attributable to Quest Diagnostics decreased to $165.5 million or $1.07 per share, from $177.7 million or $1.11 per share last year. On average, 22 analysts polled by Thomson Reuters expected the company to report profit of $1.09 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues from continuing operations were $1.82 billion for the second quarter, down 3.3% from $1.88 billion prior year. Diagnostic information services revenues decreased 3.6%. Analysts expected revenue of $1.84 billion for the quarter.

Steve Rusckowski, President and CEO of Quest Diagnostics, said, "As expected, revenues and earnings improved from first quarter levels, but were down versus the prior year. We saw continued revenue softness in the second quarter compared to the prior year due to lower healthcare utilization and reductions in reimbursement."

For 2013, the company estimates results from continuing operations, before special items, as: revenues to be 1% to 2% below the prior year, compared to previous guidance approximating the prior year level; earnings per share to be between $4.35 to $4.50, compared to previous guidance of between $4.35 and $4.55. Analysts expect the company to report fiscal 2013 profit per share of $4.35.

"We lowered our full-year revenue guidance to reflect softer healthcare utilization. Despite our reduced outlook for revenues, we maintained our EPS guidance within the previous range due to our confidence in our ability to deliver additional savings through our Invigorate initiative," Rusckowski said.