Quest Diagnostics announces 2.8% increase in revenues for full-year 2009

Quest Diagnostics Incorporated (NYSE: DGX), the world's leading provider of diagnostic testing, information and services, announced that for the fourth quarter ended December 31, 2009, income from continuing operations increased to $182 million, or $0.97 per diluted share, compared to $170 million, or $0.87 per diluted share, in 2008. The quarter included a $0.04 per share charge associated with the early extinguishment of debt, which was offset by certain non-recurring tax benefits totaling $0.04 per share.

Fourth quarter revenues increased 2.7% to $1.8 billion. Clinical testing revenues grew 2.3% compared to the prior year. Revenue per requisition increased 2.6% and clinical testing volume, measured by the number of requisitions, decreased by 0.3%. Excluding the impact of drugs-of-abuse testing, which is sensitive to hiring trends, testing volume increased by approximately 0.5%.

"We drove solid earnings growth in the fourth quarter, completing a year of strong performance. For the full year, earnings per share increased 20%, revenues grew about 3% and cash flow totaled $1 billion," said Surya N. Mohapatra, Ph.D., Chairman and Chief Executive Officer. "Revenues grew largely as a result of increased demand for innovative gene-based and esoteric tests, including cancer diagnostics. Earnings grew through top-line growth combined with continued improvements in operating efficiencies. As the leader in a vital and growing industry that is playing an increasingly important role in improving health outcomes and reducing overall healthcare costs, we are well-positioned for continued growth in 2010."

For the fourth quarter, operating income increased to $330 million, or 17.9% of revenues, from $317 million, or 17.6% of revenues in 2008. Bad debt expense, as a percentage of revenues, improved to 3.9%, compared to 4.3% at the end of 2008. Days sales outstanding improved to 43 days, compared to 44 days a year ago. Cash from operations totaled $360 million, compared to $363 million in the fourth quarter of 2008. During the quarter, the company repurchased $150 million of its common shares and made capital expenditures of $50 million.

Full Year Performance

Diluted earnings per share from continuing operations increased 20% to $3.88. Income from continuing operations increased to $730 million, from $632 million in 2008. Revenues increased 2.8% to $7.5 billion.

Operating income for 2009 increased to $1.4 billion, or 18.2% of revenues, from $1.2 billion, or 16.9% of revenues in 2008. Cash from operations for 2009, which was reduced by a $308 million settlement payment in the second quarter, was $1 billion, compared to $1.1 billion in 2008. During 2009, the company repurchased $500 million of its common shares and made capital expenditures of $167 million.

Outlook for 2010

For 2010, the company expects results from continuing operations as follows: earnings per diluted share of between $4.10 and $4.30, excluding potential special charges; revenue growth of 3% to 4%, and operating income to approach 19% of revenues.  Cash from operations is expected to approximate $1.3 billion. Capital expenditures are expected to approximate $200 million.

SOURCE Quest Diagnostics Incorporated

Citations

Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    Quest Diagnostics. (2010, January 25). Quest Diagnostics announces 2.8% increase in revenues for full-year 2009. News-Medical. Retrieved on December 22, 2024 from https://www.news-medical.net/news/20100125/Quest-Diagnostics-announces-2825-increase-in-revenues-for-full-year-2009.aspx.

  • MLA

    Quest Diagnostics. "Quest Diagnostics announces 2.8% increase in revenues for full-year 2009". News-Medical. 22 December 2024. <https://www.news-medical.net/news/20100125/Quest-Diagnostics-announces-2825-increase-in-revenues-for-full-year-2009.aspx>.

  • Chicago

    Quest Diagnostics. "Quest Diagnostics announces 2.8% increase in revenues for full-year 2009". News-Medical. https://www.news-medical.net/news/20100125/Quest-Diagnostics-announces-2825-increase-in-revenues-for-full-year-2009.aspx. (accessed December 22, 2024).

  • Harvard

    Quest Diagnostics. 2010. Quest Diagnostics announces 2.8% increase in revenues for full-year 2009. News-Medical, viewed 22 December 2024, https://www.news-medical.net/news/20100125/Quest-Diagnostics-announces-2825-increase-in-revenues-for-full-year-2009.aspx.

Comments

The opinions expressed here are the views of the writer and do not necessarily reflect the views and opinions of News Medical.
Post a new comment
Post

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.

You might also like...
IBM, Quest Diagnostics launch new genomic tumor sequencing service to help advance precision medicine