Quest Diagnostics Raises 2017 Earnings Estimates - Quick Facts

(RTTNews) - Quest Diagnostics Incorporated (DGX) revised its EPS estimates for full year 2017 results, reflecting higher than expected excess tax benefit related to stock-based compensation in the first quarter of 2017, and reaffirmed the balance of its 2017 outlook. Adjusted EPS excluding amortization is now expected to be in a range of $5.45 to $5.60 compared to previous outlook of $5.37 to $5.52. Reported EPS is now expected to be in a range of $4.73 to $4.88 compared to prior outlook range of $4.65 to $4.80.

Quest Diagnostics reported first-quarter EPS of $1.16 on a reported basis, up 63.4% from prior year; and $1.33 on an adjusted basis excluding amortization, up 17.7% from 2016. The company noted that excess tax benefit associated with stock-based compensation increased its earnings per share by $0.11 in the quarter. First-quarter revenues were $1.90 billion, up 1.9% on a reported basis and up 3.0% on an equivalent basis from previous year.

Steve Rusckowski, CEO, said: "Growth in the quarter was driven by expanding relationships with hospital health systems. Our agreement with PeaceHealth in the Pacific Northwest announced in the first quarter will further bolster growth later in the year."