Quest Diagnostics Reports Third Quarter 2025 Financial Results; Raises Guidance for Full Year 2025
- Third quarter revenues of
$2.82 billion , up 13.1% from 2024 - Third quarter reported diluted earnings per share ("EPS") of
$2.16 , up 8.5% from 2024; and adjusted diluted EPS of$2.60 , up 13.0% from 2024 - Year-to-date cash provided by operations of
$1.4 billion , up 63.1% from 2024 - Full year 2025 reported diluted EPS now expected to be between
$8.58 and$8.66 ; and adjusted diluted EPS is expected to be between$9.76 and$9.84
"We delivered another quarter of robust top- and bottom-line growth, underscoring strong demand for our clinical solutions and diligent execution of our strategy," said
Recent highlights:
- Entered into an agreement with
Corewell Health to establish a lab services joint venture inMichigan . In addition, Quest will deploy a comprehensive suite of Co-Lab Solutions, from reference testing and lab analytics to supply chain and blood management, supporting quality, innovation access and productivity. With this collaboration, annual revenues for Co-Lab Solutions are expected to reach approximately$1 billion next year as services scale across 21Corewell hospitals. - Completed the acquisition of select dialysis testing assets from
Fresenius Medical Care and, under a separate enterprise agreement, began to scale clinical lab testing forFresenius Medical Care's U.S. dialysis centers serving approximately 200,000 dialysis patients annually. - Formed collaborations to be the lab engine inside the mobile apps of WHOOP, the human performance company, and ŌURA Health, maker of the world's leading smart ring, to serve growing consumer interest in wellness and preventive health.
- Announced a collaboration with Epic to be the technology partner for Project Nova, a multi-year initiative to streamline systems and improve experiences for patients and providers, regardless of the electronic health record system they use.
- Published data in Neurology® Clinical Practice on the confirmatory accuracy of two Quest AD-Detect® tests for aiding Alzheimer's disease diagnosis.
- Announced collaborations that leverage Quest's national scale in phlebotomy and connectivity to broaden access to cancer-screening liquid biopsy tests.
- Secured FDA breakthrough device designation for our Haystack MRD™ test and formed collaborations with
Mass General Brigham andRutgers Cancer Institute to trial Haystack MRD in guiding postoperative therapy decisions. - Named
Thomas Koch , a veteran of the lab and medical device industries, to be the company's senior vice president of R&D. - Recognized as a Top Corporate Wellness Innovator by
Fast Company for our leadership in employee well-being.
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
2025 |
|
2024 |
|
Change |
|
2025 |
|
2024 |
|
Change |
|
|
|
(dollars in millions, except per share data) |
|
||||||||||
|
Reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
$ 2,816 |
|
$ 2,488 |
|
13.1 % |
|
$ 8,229 |
|
$ 7,251 |
|
13.5 % |
|
|
Diagnostic Information Services revenues |
$ 2,755 |
|
$ 2,427 |
|
13.5 % |
|
$ 8,043 |
|
$ 7,058 |
|
14.0 % |
|
|
Revenue per requisition |
|
|
|
|
0.8 % |
|
|
|
|
|
0.2 % |
|
|
Requisition volume |
|
|
|
|
12.5 % |
|
|
|
|
|
13.8 % |
|
|
Organic requisition volume |
|
|
|
|
3.9 % |
|
|
|
|
|
1.8 % |
|
|
Operating income (a) |
$ 386 |
|
$ 330 |
|
16.8 % |
|
$ 1,170 |
|
$ 985 |
|
18.7 % |
|
|
Operating income as a percentage of net revenues (a) |
13.7 % |
|
13.3 % |
|
0.4 % |
|
14.2 % |
|
13.6 % |
|
0.6 % |
|
|
Net income attributable to |
$ 245 |
|
$ 226 |
|
8.5 % |
|
$ 747 |
|
$ 649 |
|
15.0 % |
|
|
Diluted EPS (a) |
$ 2.16 |
|
$ 1.99 |
|
8.5 % |
|
$ 6.57 |
|
$ 5.74 |
|
14.5 % |
|
|
Cash provided by operations |
$ 563 |
|
$ 356 |
|
57.4 % |
|
$ 1,421 |
|
$ 870 |
|
63.1 % |
|
|
Capital expenditures |
$ 144 |
|
$ 106 |
|
37.0 % |
|
$ 369 |
|
$ 302 |
|
22.3 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
$ 458 |
|
$ 385 |
|
18.9 % |
|
$ 1,330 |
|
$ 1,132 |
|
17.5 % |
|
|
Operating income as a percentage of net revenues |
16.3 % |
|
15.5 % |
|
0.8 % |
|
16.2 % |
|
15.6 % |
|
0.6 % |
|
|
Net income attributable to |
$ 296 |
|
$ 262 |
|
13.1 % |
|
$ 845 |
|
$ 758 |
|
11.5 % |
|
|
Diluted EPS |
$ 2.60 |
|
$ 2.30 |
|
13.0 % |
|
$ 7.43 |
|
$ 6.70 |
|
10.9 % |
|
|
|
|
|
(a) |
For further details impacting the year-over-year comparisons related to operating income, operating income as a percentage of net revenues, net income attributable to |
Updated Guidance for Full Year 2025
The company updates its full year 2025 guidance as follows:
|
|
Updated Guidance |
|
Prior Guidance |
||||
|
|
Low |
|
High |
|
Low |
|
High |
|
Net revenues |
|
|
|
|
|
|
|
|
Net revenues increase |
11.0 % |
|
11.4 % |
|
9.4 % |
|
10.6 % |
|
Reported diluted EPS |
|
|
|
|
|
|
|
|
Adjusted diluted EPS |
|
|
|
|
|
|
|
|
Cash provided by operations |
Approximately |
|
Approximately |
||||
|
Capital expenditures |
Approximately |
|
Approximately |
||||
Note on Non-GAAP Financial Measures
As used in this press release the term "reported" refers to measures under accounting principles generally accepted in
Non-GAAP adjusted measures are presented because management believes those measures are useful adjuncts to GAAP results. Non-GAAP adjusted measures should not be considered as an alternative to the corresponding measures determined under GAAP. Management may use these non-GAAP measures to evaluate our performance period over period and relative to competitors, to analyze the underlying trends in our business, to establish operational budgets and forecasts and for incentive compensation purposes. We believe that these non-GAAP measures are useful to investors and analysts to evaluate our performance period over period and relative to competitors, as well as to analyze the underlying trends in our business and to assess our performance. The additional tables below include reconciliations of non-GAAP adjusted measures to GAAP measures.
Conference Call Information
A replay of the call may be accessed online at www.QuestDiagnostics.com/investor or, from approximately
About
Forward Looking Statements
The statements in this press release which are not historical facts may be forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that they are made and which reflect management's current estimates, projections, expectations or beliefs and which involve risks and uncertainties that could cause actual results and outcomes to be materially different. Risks and uncertainties that may affect the future results of the company include, but are not limited to, uncertain and volatile economic conditions, adverse results from pending or future government investigations, lawsuits or private actions, the competitive environment, the complexity of billing, reimbursement and revenue recognition for clinical laboratory testing, changes in government policies, including related to trade, and regulations, changing relationships with customers, payers, suppliers or strategic partners, acquisitions and other factors discussed in the company's most recently filed Annual Report on Form 10-K and in any of the company's subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including those discussed in the "Business," "Risk Factors," "Cautionary Factors that May Affect Future Results" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of those reports.
This earnings release, including the attached financial tables, is available online in the Newsroom section at www.QuestDiagnostics.com.
ADDITIONAL TABLES FOLLOW
|
Consolidated Statements of Operations
For the Three and Nine Months Ended (in millions, except per share data) (unaudited)
|
|||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Net revenues |
$ 2,816 |
|
$ 2,488 |
|
$ 8,229 |
|
$ 7,251 |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses and other operating income: |
|
|
|
|
|
|
|
|
Cost of services |
1,867 |
|
1,677 |
|
5,474 |
|
4,865 |
|
Selling, general and administrative |
501 |
|
448 |
|
1,463 |
|
1,304 |
|
Amortization of intangible assets |
39 |
|
32 |
|
117 |
|
90 |
|
Other operating expense, net |
23 |
|
1 |
|
5 |
|
7 |
|
Total operating costs and expenses, net |
2,430 |
|
2,158 |
|
7,059 |
|
6,266 |
|
|
|
|
|
|
|
|
|
|
Operating income |
386 |
|
330 |
|
1,170 |
|
985 |
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest expense, net |
(66) |
|
(49) |
|
(200) |
|
(136) |
|
Other income, net |
8 |
|
15 |
|
18 |
|
27 |
|
Total non-operating expense, net |
(58) |
|
(34) |
|
(182) |
|
(109) |
|
|
|
|
|
|
|
|
|
|
Income before income taxes and equity in earnings of equity method investees |
328 |
|
296 |
|
988 |
|
876 |
|
Income tax expense |
(77) |
|
(65) |
|
(233) |
|
(205) |
|
Equity in earnings of equity method investees, net of taxes |
8 |
|
6 |
|
35 |
|
14 |
|
Net income |
259 |
|
237 |
|
790 |
|
685 |
|
Less: Net income attributable to noncontrolling interests |
14 |
|
11 |
|
43 |
|
36 |
|
Net income attributable to |
$ 245 |
|
$ 226 |
|
$ 747 |
|
$ 649 |
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to |
|
|
|
|
|
|
|
|
Basic |
$ 2.18 |
|
$ 2.01 |
|
$ 6.66 |
|
$ 5.80 |
|
|
|
|
|
|
|
|
|
|
Diluted |
$ 2.16 |
|
$ 1.99 |
|
$ 6.57 |
|
$ 5.74 |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
112 |
|
112 |
|
112 |
|
111 |
|
|
|
|
|
|
|
|
|
|
Diluted |
113 |
|
113 |
|
113 |
|
112 |
|
Consolidated Balance Sheets
(in millions, except per share data) (unaudited)
|
|||
|
|
|
|
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ 432 |
|
$ 549 |
|
Accounts receivable, net |
1,456 |
|
1,304 |
|
Inventories |
186 |
|
188 |
|
Prepaid expenses and other current assets |
333 |
|
351 |
|
Total current assets |
2,407 |
|
2,392 |
|
Property, plant and equipment, net |
2,145 |
|
2,113 |
|
Operating lease right-of-use assets |
649 |
|
651 |
|
|
8,901 |
|
8,856 |
|
Intangible assets, net |
1,662 |
|
1,763 |
|
Investments in equity method investees |
137 |
|
123 |
|
Other assets |
296 |
|
255 |
|
Total assets |
$ 16,197 |
|
$ 16,153 |
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable and accrued expenses |
$ 1,457 |
|
$ 1,394 |
|
Current portion of long-term debt |
504 |
|
602 |
|
Current portion of long-term operating lease liabilities |
173 |
|
173 |
|
Total current liabilities |
2,134 |
|
2,169 |
|
Long-term debt |
5,171 |
|
5,615 |
|
Long-term operating lease liabilities |
534 |
|
535 |
|
Other liabilities |
982 |
|
938 |
|
Redeemable noncontrolling interest |
81 |
|
83 |
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
Common stock, par value |
2 |
|
2 |
|
Additional paid-in capital |
2,355 |
|
2,361 |
|
Retained earnings |
9,837 |
|
9,360 |
|
Accumulated other comprehensive loss |
(40) |
|
(88) |
|
|
(4,896) |
|
(4,857) |
|
|
7,258 |
|
6,778 |
|
Noncontrolling interests |
37 |
|
35 |
|
Total stockholders' equity |
7,295 |
|
6,813 |
|
Total liabilities and stockholders' equity |
$ 16,197 |
|
$ 16,153 |
|
Consolidated Statements of Cash Flows
For the Nine Months Ended (in millions) (unaudited)
|
|||
|
|
Nine Months Ended |
||
|
|
2025 |
|
2024 |
|
Cash flows from operating activities: |
|
|
|
|
Net income |
$ 790 |
|
$ 685 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
Depreciation and amortization |
425 |
|
358 |
|
Provision for credit losses |
2 |
|
4 |
|
Deferred income tax expense (benefit) |
118 |
|
(21) |
|
Stock-based compensation expense |
63 |
|
61 |
|
Other, net |
37 |
|
17 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
(153) |
|
(140) |
|
Accounts payable and accrued expenses |
113 |
|
(102) |
|
Income taxes payable |
(1) |
|
31 |
|
Other assets and liabilities, net |
27 |
|
(23) |
|
Net cash provided by operating activities |
1,421 |
|
870 |
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
Business acquisitions, net of cash acquired |
(51) |
|
(1,781) |
|
Capital expenditures |
(369) |
|
(302) |
|
Other investing activities, net |
(20) |
|
37 |
|
Net cash used in investing activities |
(440) |
|
(2,046) |
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
Proceeds from borrowings |
410 |
|
1,846 |
|
Repayments of debt |
(1,011) |
|
(302) |
|
Purchases of treasury stock |
(150) |
|
— |
|
Exercise of stock options |
61 |
|
52 |
|
Employee payroll tax withholdings on stock issued under stock-based compensation plans |
(44) |
|
(24) |
|
Dividends paid |
(263) |
|
(247) |
|
Distributions to noncontrolling interest partners |
(43) |
|
(35) |
|
Other financing activities, net |
(61) |
|
(36) |
|
Net cash (used in) provided by financing activities |
(1,101) |
|
1,254 |
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
3 |
|
— |
|
|
|
|
|
|
Net change in cash and cash equivalents and restricted cash |
(117) |
|
78 |
|
Cash and cash equivalents and restricted cash, beginning of period |
549 |
|
686 |
|
Cash and cash equivalents and restricted cash, end of period |
$ 432 |
|
$ 764 |
|
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
Interest |
$ 167 |
|
$ 167 |
|
Income taxes |
$ 112 |
|
$ 179 |
Notes to Financial Tables
|
1) The computation of basic and diluted earnings per common share is as follows:
|
|||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
(in millions, except per share data) |
||||||
|
Amounts attributable to |
|
|
|
|
|
|
|
|
Net income attributable to |
$ 245 |
|
$ 226 |
|
$ 747 |
|
$ 649 |
|
Less: earnings allocated to participating securities |
2 |
|
1 |
|
4 |
|
3 |
|
Earnings available to |
$ 243 |
|
$ 225 |
|
$ 743 |
|
$ 646 |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic |
112 |
|
112 |
|
112 |
|
111 |
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
Stock options and performance share units |
1 |
|
1 |
|
1 |
|
1 |
|
Weighted average common shares outstanding - diluted |
113 |
|
113 |
|
113 |
|
112 |
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to |
|
|
|
|
|
|
|
|
Basic |
$ 2.18 |
|
$ 2.01 |
|
$ 6.66 |
|
$ 5.80 |
|
Diluted |
$ 2.16 |
|
$ 1.99 |
|
$ 6.57 |
|
$ 5.74 |
|
2) The following tables reconcile reported GAAP results to non-GAAP adjusted results:
|
|||||||||||
|
|
Three Months Ended |
||||||||||
|
|
(dollars in millions, except per share data) |
||||||||||
|
|
Operating |
|
Operating |
|
Income tax |
|
Equity in |
|
Net income |
|
Diluted EPS |
|
As reported |
$ 386 |
|
13.7 % |
|
$ (77) |
|
$ 8 |
|
$ 245 |
|
$ 2.16 |
|
Restructuring and integration charges (a) |
11 |
|
0.4 |
|
(2) |
|
— |
|
9 |
|
0.07 |
|
Other charges (b) |
22 |
|
0.8 |
|
(6) |
|
— |
|
16 |
|
0.15 |
|
Amortization expense |
39 |
|
1.4 |
|
(10) |
|
— |
|
29 |
|
0.25 |
|
ETB |
— |
|
— |
|
(3) |
|
— |
|
(3) |
|
(0.03) |
|
As adjusted |
$ 458 |
|
16.3 % |
|
$ (98) |
|
$ 8 |
|
$ 296 |
|
$ 2.60 |
|
|
Nine Months Ended |
||||||||||
|
|
(dollars in millions, except per share data) |
||||||||||
|
|
Operating |
|
Operating |
|
Income tax |
|
Equity in |
|
Net income |
|
Diluted EPS |
|
As reported |
$ 1,170 |
|
14.2 % |
|
$ (233) |
|
$ 35 |
|
$ 747 |
|
$ 6.57 |
|
Restructuring and integration charges (a) |
37 |
|
0.5 |
|
(9) |
|
— |
|
28 |
|
0.24 |
|
Other charges (b) |
52 |
|
0.6 |
|
(12) |
|
— |
|
40 |
|
0.36 |
|
Gains and losses on investments (c) |
— |
|
— |
|
1 |
|
(1) |
|
(2) |
|
(0.01) |
|
Other gains (d) |
(46) |
|
(0.5) |
|
14 |
|
(8) |
|
(40) |
|
(0.36) |
|
Amortization expense |
117 |
|
1.4 |
|
(30) |
|
— |
|
87 |
|
0.76 |
|
ETB |
— |
|
— |
|
(15) |
|
— |
|
(15) |
|
(0.13) |
|
As adjusted |
$ 1,330 |
|
16.2 % |
|
$ (284) |
|
$ 26 |
|
$ 845 |
|
$ 7.43 |
|
|
Three Months Ended |
||||||||||
|
|
(dollars in millions, except per share data) |
||||||||||
|
|
Operating |
|
Operating |
|
Income tax |
|
Equity in |
|
Net income |
|
Diluted EPS |
|
As reported |
$ 330 |
|
13.3 % |
|
$ (65) |
|
$ 6 |
|
$ 226 |
|
$ 1.99 |
|
Restructuring and integration charges (a) |
18 |
|
0.7 |
|
(3) |
|
— |
|
15 |
|
0.13 |
|
Other charges (b) |
5 |
|
0.2 |
|
— |
|
— |
|
4 |
|
0.04 |
|
Gains and losses on investments (c) |
— |
|
— |
|
— |
|
2 |
|
2 |
|
0.02 |
|
Other gains (d) |
— |
|
— |
|
2 |
|
— |
|
(6) |
|
(0.06) |
|
Amortization expense |
32 |
|
1.3 |
|
(8) |
|
— |
|
24 |
|
0.21 |
|
ETB |
— |
|
— |
|
(3) |
|
— |
|
(3) |
|
(0.03) |
|
As adjusted |
$ 385 |
|
15.5 % |
|
$ (77) |
|
$ 8 |
|
$ 262 |
|
$ 2.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
||||||||||
|
|
(dollars in millions, except per share data) |
||||||||||
|
|
Operating |
|
Operating |
|
Income tax |
|
Equity in |
|
Net income |
|
Diluted EPS |
|
As reported |
$ 985 |
|
13.6 % |
|
$ (205) |
|
$ 14 |
|
$ 649 |
|
$ 5.74 |
|
Restructuring and integration charges (a) |
45 |
|
0.6 |
|
(10) |
|
— |
|
35 |
|
0.31 |
|
Other charges (b) |
12 |
|
0.2 |
|
— |
|
— |
|
11 |
|
0.10 |
|
Gains and losses on investments (c) |
— |
|
— |
|
(3) |
|
11 |
|
8 |
|
0.07 |
|
Other gains (d) |
— |
|
— |
|
2 |
|
— |
|
(6) |
|
(0.06) |
|
Amortization expense |
90 |
|
1.2 |
|
(23) |
|
— |
|
67 |
|
0.59 |
|
ETB |
— |
|
— |
|
(6) |
|
— |
|
(6) |
|
(0.05) |
|
As adjusted |
$ 1,132 |
|
15.6 % |
|
$ (245) |
|
$ 25 |
|
$ 758 |
|
$ 6.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
For each of the three and nine months ended |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
(dollars in millions) |
||||||
|
Cost of services |
$ 1 |
|
$ 5 |
|
$ 8 |
|
$ 19 |
|
Selling, general and administrative |
10 |
|
15 |
|
29 |
|
28 |
|
Other operating expense, net |
— |
|
(2) |
|
— |
|
(2) |
|
Operating income |
$ 11 |
|
$ 18 |
|
$ 37 |
|
$ 45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
The pre-tax impacts for both the three and nine months ended |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
(dollars in millions) |
||||||
|
Selling, general and administrative |
$ — |
|
$ 1 |
|
$ — |
|
$ 2 |
|
Other operating expense, net |
22 |
|
4 |
|
52 |
|
10 |
|
Operating income |
$ 22 |
|
$ 5 |
|
$ 52 |
|
$ 12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) |
For each of the three and nine months ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) |
The nine months ended |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
(dollars in millions) |
||||||
|
Other operating expense, net |
$ — |
|
$ — |
|
$ 46 |
|
$ — |
|
|
|
|
|
|
|
|
|
|
Other income, net |
$ — |
|
$ 8 |
|
$ — |
|
$ 8 |
|
|
|
|
|
|
|
|
|
|
Equity in earnings of equity method investees, net of taxes |
$ — |
|
$ — |
|
$ 8 |
|
$ — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(e) |
For restructuring and integration charges, other gains/charges, gains and losses on investments and amortization expense, income tax impacts, where recorded, were primarily calculated using combined statutory income tax rates of 25.5% for both 2025 and 2024. No income tax impact was recorded on gains/losses associated with the change in the fair value of the contingent consideration accrual associated with previous acquisition. |
|
3) |
For both the three and nine months ended |
|
|
|
|
4) |
The outlook for adjusted diluted EPS represents management's estimates for the full year 2025 before the impact of special items. Further impacts to earnings related to special items may occur throughout 2025. Additionally, the amount of ETB is dependent upon employee stock option exercises and our stock price, which are difficult to predict. The following table reconciles our 2025 outlook for diluted EPS under GAAP to our outlook for adjusted diluted EPS: |
|
|
|
|
|
Low |
|
High |
|
Diluted EPS |
$ 8.58 |
|
$ 8.66 |
|
Restructuring and integration charges (a) |
0.30 |
|
0.30 |
|
Amortization expense (b) |
1.02 |
|
1.02 |
|
Other charges (c) |
0.39 |
|
0.39 |
|
Other gains (d) |
(0.36) |
|
(0.36) |
|
Gains and losses on investments (e) |
(0.01) |
|
(0.01) |
|
ETB |
(0.16) |
|
(0.16) |
|
Adjusted diluted EPS |
$ 9.76 |
|
$ 9.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Represents estimated pre-tax charges of $45 million primarily associated with workforce reductions and integration costs incurred in connection with further restructuring and integrating our business. Income tax benefits were primarily calculated using a combined statutory income tax rate of 25.5%. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
Represents estimated pre-tax amortization expenses of $154 million. Income tax benefits were primarily calculated using a combined statutory income tax rate of 25.5%. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) |
Includes a $29 million pre-tax impairment charge on certain long-lived assets related to the exit of a business and a $15 million charge to earnings related to legal matters. Additionally, includes estimated pre-tax net charges of $11 million associated with the estimated change in the fair value of the contingent consideration accrual associated with previous acquisitions. Such estimate is subject to the risks and uncertainties discussed in the "Forward Looking Statements" section above. No income tax impacts were recorded on the changes associated with the contingent consideration accrual. Income tax benefits on the other charges were calculated using a combined statutory income tax rate of 25.5%. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) |
Includes a pre-tax gain of $46 million related to a payroll tax credit under the CARES Act associated with the retention of employees. Additionally, includes a non-recurring pre-tax gain of $8 million related to a lease. Income tax impacts were calculated using a combined statutory income tax rate of 25.5%. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(e) |
Income tax impacts were calculated using a combined statutory income tax rate of 25.5%. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/quest-diagnostics-reports-third-quarter-2025-financial-results-raises-guidance-for-full-year-2025-302589471.html
SOURCE
