![]() ![]() As a result, Quest Diagnostics and other commercial labs compete with hospital-affiliated labs primarily on the basis of the quality of service.Ĭurrent Market Headwinds Weigh Heavy:The current market environment remains challenging for Quest Diagnostics due to a persistent decline in healthcare utilization rate, softer volume, commercial pricing pressure and reimbursement headwind. While pricing is an important factor in choosing a testing lab, hospital-affiliated physicians expect a high level of service, including the accurate and rapid turnaround of testing results. Hospitals control an estimated 60% of the diagnostic test market compared with Quest Diagnostic’s 15% share. DownsidesĬompetitive Landscape:Quest Diagnostics faces intense competition primarily from LabCorp, other commercial laboratories and hospitals. The Zacks Consensus Estimate for the same is pegged at $9.31 billion. Full-year net revenues are now estimated to be $9.20-$9.50 billion (increasing the low end of the earlier mentioned $9.00-$9.50). The Zacks Consensus Estimate for the metric is pegged at $9.01. Adjusted earnings per share are expected to be $9.00-$9.50 (compared with the earlier stated $8.65-$9.35). Based on these factors, it raised its COVID-19 revenue guidance for 2022 to $850 million-$1 billion.ĮPS Guidance Raised: The company raised its 2022 EPS guidance. The public health emergency was extended into July, maintaining the company’s current level of reimbursement. The company expects continued demand for PCR testing through the end of 2022 and into 2023, albeit at lower levels. However, Quest Diagnostics noted that nearly 60% of the COVID-19 revenues came from the Omicron peak in January. ![]() Quest Diagnostics’ health plan revenues, excluding COVID-19, grew faster than its overall base business performance in the first quarter.ĬOVID-19 Test Demand to Remain: COVID-19 testing revenues were significantly down in the first quarter. The company noted that, in the first quarter, it continued to make inroads with its health plans, gaining share and increasing revenues faster than the market. The company’s legacy base business grew more than 6.3% in the first quarter of 2022. Key Growth Catalystsīase Volume Improves: Quest Diagnostics’ base testing volumes or base business refers to testing volumes, excluding COVID-19 testing. ![]()
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