Quest Diagnostics slumps on weak 3Q forecast
NEW YORK (AP) - Medical lab operator Quest Diagnostics forecast disappointing third-quarter results on Thursday, and its shares skidded more than 3 percent in morning trading.
Quest said testing volume fell about 1 percent compared to last year as demand weakened in the latter part of the quarter, and revenue per request for testing fell 3.3 percent if recent acquisitions are excluded.
The company said it expects to report adjusted earnings of $1.02 per share from continuing operations, and it said revenue will fall 2 percent to $1.79 billion.
Analysts were projecting earnings of $1.20 per share and $1.84 billion in revenue, according to FactSet.
Shares of Quest Diagnostics Inc. shares sank $2.08, or 3.5 percent, to $59.62 in morning trading.
The company said its net income will total $2.66 per share if two one-time items are included. Those items are a gain on the sale of its rights to royalties from the experimental cancer drug ibrutinib and a loss on the sale of Quest's Enterix colorectal cancer screening business.
The Madison, N.J., company is scheduled to report its third-quarter results on Oct. 17. Quest said it will update its annual guidance at that time.
In July Quest lowered its earnings guidance to a range of $4.35 to $4.50 per share. Analysts now expect $4.35 per share on average.