Shares in Quest Diagnostics (NYSE:DGX) held steady today after the company met earnings expectations on Wall Street but missed analysts’ sales estimates with its first-quarter results.
The Secaucus, N.J.-based company posted profits of $177 million, or $1.27 per share, on sales of $1.88 million for the 3 months ended March 31, for bottom-line growth of 7.9% on sales growth of 3.7% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were $1.52, just ahead of the $1.50 consensus on The Street. Analysts were looking for sales of $1.9 billion.
“We delivered strong revenue and earnings growth in the first quarter,” chairman, president & CEO Steve Rusckowski said in prepared remarks. “We grew revenue 3.7% despite severe winter weather and the impact of lower Medicare reimbursement under PAMA. Earnings growth was driven by our continued strong execution as well as the benefits of tax reform. Our two-point strategy of accelerating growth and driving operational excellence continues to produce results.”
Quest Diagnostics said it expects to post sales of $7.70 billion to $7.77 billion for the full year.
DGX shares were trading at $100.95 apiece today in mid-morning activity, up 0.1%.
