Quest Diagnostics Q4 Profit Soars, Boosts Dividend 10%; Provides Weak Outlook

(RTTNews) - Quest Diagnostics Inc. (DGX) reported that fourth-quarter net income surged to $143 million or $0.97 per share from $56 million or $0.45 per share in the prior-year quarter.

Income from continuing operations for the quarter grew to $143 million or $0.97 per share from $140 million or $0.87 per share in the prior-year quarter.

Excluding items, adjusted income from continuing operations was $151 million or $1.03 per share, compared to $163 million or $1.01 per share last year

On average, 25 analysts polled by Thomson Reuters expected the company to report earnings of $0.93 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter declined 1 percent to $1.75 billion from $1.77 billion in the prior year quarter. Twenty-two Wall Street analysts had consensus revenue estimate of $1.74 billion for the quarter.

Volume, measured by the number of requisitions, increased 2.3 percent from last year. Recent acquisitions added nearly 3 percent to volume and about 2 percent to revenue growth.

Looking ahead to fiscal 2014, the company expects adjusted earnings from continuing operations in a range of $3.90 to $4.10 per share, on revenues projected to be flat or down 2 percent from last year. Analysts expect the company to report earnings of $4.18 per share on revenues of $7.15 billion for fiscal 2014.

Further, Quest Diagnostics' board of directors authorized a 10 percent increase in its quarterly dividend from to $0.33 from $0.30 per share, or $1.32 per share annually, payable on April 23 to shareholders of record of Quest Diagnostics common stock on April 8, 2014.