Quest Diagnostics revenue tops expectations on demand for coronavirus testing services

Earnings

People volunteer for Covid-19 surveillance testing using the Quest Diagnostics self administered PCR test on on July 12, 2020 in Livingston, Montana.

William Campbell | Getty Images

Quest Diagnostics reported preliminary second-quarter revenue above analysts’ estimates on Monday, largely on growing demand for its Covid-19 testing services, sending its shares up 2.7% before the bell.

The company said revenue fell 6% to about $1.83 billion, but was still ahead of the average analyst estimate of $1.52 billion, according to Refinitiv I/B/E/S data.

Quest said results also reflected stronger-than-expected recovery in base testing volumes, which have fallen about 34% compared with year-ago period, excluding COVID-19 molecular and antibody testing.

The company had started witnessing a faster-than-expected recovery in its testing volumes in the United States in June, after a more than 40% decline during the last two weeks of March.

Excluding items, the diagnostics company is expecting to earn between $1.39 and $1.42 per share. Analysts are expecting adjusted profit of 12 cents.

Quest is expected to report second-quarter results on July 23.

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