Quest Diagnostics Stock Hits Over 2-Month High On Q4 Beat, Dividend Hike: Retail Cheer Grows
Quest completed eight acquisitions in 2024, including LifeLabs, expanded its advanced diagnostics portfolio, and extended its market reach with new clinical, consumer, and health plan customers.
FollowShares of Quest Diagnostics, Inc. jumped nearly 6% to hit levels last seen toward the end of November, driven by upbeat quarterly earnings.
The stock is on course to notch its best intraday session in over three months.
The company reported fourth-quarter (Q4) adjusted earnings per share (EPS) of $2.23, beating the consensus estimate of $2.18, while revenue came in at $2.62 billion, surpassing expectations of $2.58 billion.
"In the fourth quarter, we delivered impressive revenue growth of nearly 15%, including approximately 5% organic growth, while also improving our profitability," said CEO Jim Davis.
He added that Quest completed eight acquisitions in 2024, including LifeLabs in Canada, expanded its advanced diagnostics portfolio, and extended its market reach with new clinical, consumer, and health plan customers.
Looking ahead, Quest sees full-year adjusted EPS between $9.55 and $9.80, compared to the consensus estimate of $9.72.
The company expects FY25 revenue in the range of $10.7 billion to $10.85 billion, above the consensus of $10.67 billion.
It also anticipates generating $1.45 billion in cash from operations and plans capital expenditures of $500 million for the year.
Quest’s board of directors has authorized a 6.7% increase in its quarterly dividend from $0.75 to $0.80 per share, or $3.20 annually, effective with the dividend payable on April 21 to shareholders of record on April 7.
The company said it has raised its dividend annually since 2011.
DGX sentiment and message volume Jan 30 as of 12:30 pm ET | source: Stocktwits
On Stocktwits, sentiment for Quest turned ‘extremely bullish,’ with message volume soaring.
The stock has generated significant attention on the platform, with message volume tripling over the past three months.
Quest rose to prominence during the COVID-19 pandemic, supplying virus testing kits at scale. As infections waned, the company pivoted back to its core business.
Last year, it struck a deal to acquire LifeLabs, a leading Canadian community laboratory services provider, from pension fund OMERS for approximately C$1.35 billion ($985 million), including net debt.
Shares of Quest have gained more than 26% over the past 12 months.
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