Quest Diagnostics (NYSE:DGX) Updates FY23 Earnings Guidance

Quest Diagnostics (NYSE:DGX – Get Rating) issued an update on its FY23 earnings guidance on Thursday morning. The company provided earnings per share guidance of $8.40-9.00 for the period, compared to the consensus earnings per share estimate of $8.71. The company issued revenue guidance of $8.83 billion to $9.03 billion, compared to the consensus revenue estimate of $8.98 billion.

Quest Diagnostics Price Performance

DGX stock opened at $131.53 on Friday. The company has a current ratio of 1.22, a quick ratio of 1.10 and a debt-to-equity ratio of 0.67. The company has a market capitalization of $14.64 billion, a PE ratio of 16.61 and a beta of 0.95. Quest Diagnostics has a 12-month low of $120.40 and a 12-month high of $158.34. The business’s fifty day moving average price is $143.40 and its 200 day moving average price is $141.15.

Quest Diagnostics (NYSE:DGX – Get Rating) last posted its quarterly earnings data on Thursday, February 2nd. The medical research company reported $1.98 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.90 by $0.08. The firm had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.26 billion. Quest Diagnostics had a return on equity of 18.84% and a net margin of 9.57%. The company’s quarterly revenue was down 15.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.33 EPS. On average, sell-side analysts anticipate that Quest Diagnostics will post 8.69 EPS for the current year.

Quest Diagnostics Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, April 24th. Investors of record on Monday, April 10th will be issued a $0.71 dividend. This represents a $2.84 annualized dividend and a dividend yield of 2.16%. The ex-dividend date of this dividend is Thursday, April 6th. This is an increase from Quest Diagnostics’s previous quarterly dividend of $0.66. Quest Diagnostics’s payout ratio is currently 33.33%.

Quest Diagnostics declared that its board has approved a stock buyback program on Thursday, February 2nd that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the medical research company to repurchase up to 6% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Analyst Ratings Changes

Several research analysts recently commented on the company. Wells Fargo & Company boosted their target price on Quest Diagnostics from $135.00 to $140.00 and gave the stock an equal weight rating in a research note on Friday, February 3rd. Evercore ISI assumed coverage on Quest Diagnostics in a research note on Monday, January 23rd. They set an inline rating and a $159.00 target price for the company. Mizuho reissued a buy rating and set a $165.00 target price on shares of Quest Diagnostics in a research note on Friday. Truist Financial lowered their target price on Quest Diagnostics from $170.00 to $160.00 and set a hold rating for the company in a research note on Friday. Finally, Credit Suisse Group boosted their target price on Quest Diagnostics from $143.00 to $146.00 and gave the stock a neutral rating in a research note on Wednesday, January 25th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of Hold and an average target price of $150.91.

Insider Activity at Quest Diagnostics

In related news, SVP Michael E. Prevoznik sold 1,415 shares of the company’s stock in a transaction dated Friday, February 24th. The stock was sold at an average price of $141.42, for a total value of $200,109.30. Following the completion of the sale, the senior vice president now directly owns 39,440 shares of the company’s stock, valued at approximately $5,577,604.80. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Insiders own 1.70% of the company’s stock.

Institutional Trading of Quest Diagnostics

A number of large investors have recently made changes to their positions in the company. B. Riley Wealth Advisors Inc. acquired a new stake in shares of Quest Diagnostics in the 4th quarter valued at about $245,000. Truist Financial Corp raised its stake in Quest Diagnostics by 22.1% during the 4th quarter. Truist Financial Corp now owns 22,965 shares of the medical research company’s stock valued at $3,593,000 after acquiring an additional 4,157 shares during the last quarter. Compass Wealth Management LLC purchased a new stake in Quest Diagnostics during the 4th quarter valued at approximately $67,000. GHP Investment Advisors Inc. raised its stake in Quest Diagnostics by 10.0% during the 4th quarter. GHP Investment Advisors Inc. now owns 27,835 shares of the medical research company’s stock valued at $4,354,000 after acquiring an additional 2,538 shares during the last quarter. Finally, Cullen Capital Management LLC purchased a new stake in Quest Diagnostics during the 4th quarter valued at approximately $217,000. 88.79% of the stock is owned by institutional investors and hedge funds.

About Quest Diagnostics

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Quest Diagnostics, Inc engages in the provision of diagnostic testing, information and services. It operates through the Diagnostic Information Services (DIS) and All Other segments. The DIS segment offers diagnostic information services to patients, clinicians, hospitals, health plans, and employers.