Quest Diagnostics (DGX, Financial) stock jumped by 5.62% recently as it neared its all-time high. This notable movement was propelled by the company's release of strong fourth-quarter and full-year 2024 earnings, which surpassed analysts' expectations.
For the fourth quarter, Quest Diagnostics reported revenues of $2.62 billion, representing an almost 15% year-over-year increase. The non-GAAP net income rose by 4% to $253 million, translating to $2.23 per share. These results exceeded the analysts' forecast of $2.58 billion in revenue and $2.19 per share in adjusted net income. The company attributed these strong results to strategic asset acquisitions and an expanded product portfolio.
Looking ahead, Quest Diagnostics provided an optimistic outlook for 2025 with projected revenues ranging from $10.7 billion to $10.85 billion, surpassing the analyst consensus of $10.67 billion. The guidance for adjusted earnings per share is set between $9.55 and $9.80, aligning well with the average analyst projection of $9.72.
In terms of stock analysis, DGX’s price currently stands at $164.18. The company's market capitalization is approximately $18.32 billion with a PE ratio of 22.07, indicating a valuation that is relatively close to its 10-year high. Quest Diagnostics' price-to-book ratio is 2.71, and the GF Value suggests the stock is modestly overvalued at $145.36. Investors can view more on the GF Value through this GF Value link.
Despite the positive earnings report, there are some medium and severe warning signs for DGX. The Altman Z-Score of 2.84 is in the grey area, suggesting some financial stress, and the operating margin has experienced a decline over the last five years. Nevertheless, Quest Diagnostics' Piotroski F-Score of 7 indicates a strong financial health, and the Beneish M-Score suggests it is unlikely to manipulate its financial statements.
Overall, Quest Diagnostics (DGX, Financial) continues to be a significant player in the Medical Diagnostics and Research industry, garnering attention with its latest strong financial performance and optimistic future guidance.
