William Blair Reiterates Market Perform On Quest Diagnostics Shares

In a research report issued today, William Blair analyst Amanda Murphy reiterated a Market Perform rating on Quest Diagnostics (NYSE:DGX). No price target was provided.

Murphy noted, “We currently project full-year revenue growth of 3.3% and adjusted EPS of $4.07. At the midpoint of guidance, implied fourth-quarter results call for revenue growth of 5.1% and adjusted EPS of $1.03, below our current model of 5.4% and adjusted EPS of $1.07. Given that the company raised top-line guidance but narrowed EPS guidance suggests deterioration in EBIT margin in the fourth quarter. • Revenue growth was 6.5%, above our 5.3% estimate. Diagnostic information services revenue grew 7.1%, driven by volume growth of 7.8% (consensus was 7.3%) and revenue per requisition decline of 0.7% (consensus was down 1.86%), better than our estimate of 7.5% volume growth and a revenue per requisition decline of 1.5%. Acquisitions added 7.0% to revenue growth, implying organic growth of 0.1%. We estimate organic revenue per requisition to be up 0.3% and organic volume to be down 0.2%.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Amanda Murphy has a total average return of 4.7% and a 77.8% success rate. Murphy is ranked #1524 out of 3339 analysts.

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