Quest Diagnostics Incorporated (NYSE: DGX) has reported its financial results for the second quarter ending June 30, 2024. The company's second quarter revenues reached $2.40 billion, marking a 2.5% increase from the same period in 2023. The reported diluted earnings per share (EPS) for the quarter were $2.03, down 1.0% from 2023, while the adjusted diluted EPS stood at $2.35, indicating a 2.2% increase from the previous year.
For the full year 2024, Quest Diagnostics has raised its revenue guidance to be between $9.50 billion and $9.58 billion. The reported diluted EPS for the full year is now expected to be between $7.57 and $7.77, while the adjusted diluted EPS is projected to be between $8.80 and $9.00.
In terms of the financial performance for the three months ended June 30, 2024, compared to the same period in 2023, the net revenues increased by 2.5% to $2.397 billion. The diagnostic information services revenues also saw a growth of 2.8% to $2.333 billion. Additionally, the revenue per requisition increased by 1.6%, and requisition volume increased by 1.1%.
The operating income for the second quarter of 2024 was $355 million, a 1.9% increase from 2023. However, the net income attributable to Quest Diagnostics decreased by 2.4% to $229 million. The reported diluted EPS also declined by 1.0% to $2.03. On an adjusted basis, the operating income increased by 2.1% to $398 million, and the net income attributable to Quest Diagnostics rose by 1.4% to $266 million. The adjusted diluted EPS for the quarter stood at $2.35, up 2.2% from 2023.
Looking at the six months ended June 30, 2024, the net revenues grew by 2.0% to $4.763 billion, while the diagnostic information services revenues increased by 2.3% to $4.631 billion. The operating income for the first half of 2024 was $655 million, a marginal increase of 0.2% from 2023. The net income attributable to Quest Diagnostics decreased by 3.1% to $423 million, and the reported diluted EPS saw a decline of 2.1% to $3.75. On an adjusted basis, the operating income increased by 1.0% to $747 million, and the net income attributable to Quest Diagnostics rose by 0.2% to $496 million. The adjusted diluted EPS for the first half of 2024 stood at $4.39, up 1.2% from 2023.
The company also provided updated guidance for the full year 2024, with the net revenues now expected to increase by 2.7% to 3.5% and the adjusted diluted EPS projected to be between $8.80 and $9.00.
Quest Diagnostics continues to pursue strategic acquisitions, including the planned acquisition of LifeLabs, which is expected to enhance its position in serving Canada's growing and aging population. The company also completed the acquisition of PathAI Diagnostics, which is aimed at scaling digital pathology innovation to improve cancer diagnoses.
Quest Diagnostics' financial performance and strategic initiatives reflect its commitment to delivering strong results and pursuing growth opportunities in the evolving healthcare landscape. Following these announcements, the company's shares moved 0.9%, and are now trading at a price of $147.35. For more information, read the company's full 8-K submission here.
