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Valued at a market cap of $18.2 billion, Quest Diagnostics Incorporated (DGX) provides diagnostic testing and services in the United States and internationally. Founded in 1967 and based in Secaucus, New Jersey, DGX develops and delivers diagnostic information services. The company is expected to announce its fiscal Q1 earnings results on Tuesday, Apr. 22, before the market opens.
Ahead of this event, analysts project the company to report a profit of $2.16 per share, up 5.9% from $2.04 per share in the year-ago quarter. The company has beaten Wall Street's EPS estimates in all of the last four quarters, which is impressive.
In the fourth quarter, DGX reported EPS of $2.23, surpassing consensus estimates by 1.8%, driven by robust organic growth in its revenue, as well as an expansion of its portfolio, coupled with an extended geographic and market reach with new clinical, consumer and health plan customers.
For fiscal 2025, analysts expect DGX to report an EPS of $9.69 per share, up 8.5% from $8.93 in fiscal 2024. Moreover, its EPS is expected to increase 8.2% year-over-year to $10.48 per share in fiscal 2026.
Shares of DGX have surged 24.9% over the past 52 weeks, outperforming the S&P 500 Index’s ($SPX) 1.4% fall and the Health Care Select Sector SPDR Fund’s (XLV) 4.7% decline over the same time frame.
Following the release of a strong fourth-quarter 2024 earnings report on Jan. 30, shares of Quest Diagnostics jumped 5.6%. Investors responded positively to the 14.5% year-over-year revenue growth, fueled by strategic acquisitions such as LifeLabs and continued expansion in advanced diagnostics. Further boosting sentiment, Quest issued an upbeat 2025 revenue outlook of $10.7 billion to $10.9 billion, coming in above consensus estimates.
Analysts' consensus view on DGX’s stock is moderately bullish, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, nine recommend a "Strong Buy," and the remaining eight indicate a “Hold” rating.
Its average analyst price target of $180.94 indicates a premium of 10.2% from the current market prices.
