Quest Diagnostics (DGX) Reports Prelim. 2Q EPS/Revenue Results Above Consensus on Base Testing Recovery and COVID-19 Testing

Quest Diagnostics Incorporated (NYSE: DGX) announced today preliminary financial results for the second quarter ended June 30, 2020. The results reflect stronger than forecasted recovery in base testing volumes (excluding COVID-19 molecular and antibody testing) as well as growing demand for COVID-19 testing services.

Preliminary second quarter 2020 reported revenue is expected to be approximately $1.83 billion (*** consensus is $1.52 billion), a decline of approximately 6% versus the 2019 period. Volume, measured by the number of requisitions, declined approximately 18% versus the prior year. Testing volumes in the company's base business (excluding COVID-19 molecular and antibody testing) declined approximately 34% versus the prior year.

Preliminary reported diluted earnings per share from continuing operations ("EPS") for the second quarter 2020 is expected to be between $1.33 and $1.36 compared to $1.51 in 2019. Preliminary adjusted diluted EPS for the second quarter 2020 is expected to be between $1.39 and $1.42 (*** consensus is $0.12) compared to $1.73 in 2019 and excludes $65 million that the company received in the second quarter of 2020 from the initial tranche of funds that were appropriated to healthcare providers under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") for expenses or lost revenues that are attributable to the COVID-19 pandemic. Both preliminary reported and adjusted diluted EPS exclude any proceeds that we may receive from the secondary tranche of funds distributed to healthcare providers under the CARES Act.

The company will report second quarter 2020 results on Thursday, July 23, 2020 and conduct a conference call at which time it will provide further detail on second quarter performance as well as updates on the impact of the COVID-19 pandemic.

The company continues to believe that the pandemic's impact on its future operating results, cash flows and/or financial condition will be primarily driven by: the pandemic's severity and duration; the pandemic's impact on the U.S. healthcare system and the U.S. economy; and the timing, scope and effectiveness of federal, state and local governmental responses to the pandemic which are drivers beyond the company's knowledge and control.

Second Quarter 2020 Earnings Release Scheduled for July 23, 2020

The company will report second quarter 2020 results on Thursday, July 23, 2020, before the market opens. It will hold its quarterly conference call to discuss the results beginning at 8:30 a.m. Eastern Time on that day.

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