The company’s ongoing efforts to partner with health plans in actively steering patients to high-quality, lower-cost providers have resulted in volume growth. The base business was driven by the strong performance across physician and health system lab services. Q1 Highlights: In the first quarter, Quest Diagnostics’ earnings and revenues were better than expected. Within advanced diagnostics, the brain health area expanded, banking on Quest AD-Detect Alzheimer's blood test. New test volumes started to flow into the company’s New Jersey laboratory earlier this month. The combined strengths of Haystack liquid biopsy technology and DGX’s screening, pathology and sequencing will enable the latter to play a leading role in the fast-growing MRD category.įurther, the company recently completed its strategic laboratory services acquisition with NewYork-Presbyterian. Quest Diagnostics started benefiting from incentives related to these value-based contracts, which help demonstrate the value of strategic relationships.Īccelerate Growth Strategy Bodes Well: On Apr 27, the company announced its planned acquisition of Haystack Oncology - an early-stage oncology company, focused on minimal residual disease or minimal residual disease (MRD) testing. Within health plans, the company continued to gain traction with value-based contracts. The growth trend in health plan volumes is faster than the overall business. This suggests that people are returning to the healthcare system for routine care after delaying the same during the pandemic. Strong volume growth across all customer types is encouraging. The company’s earnings surpassed estimates in all the trailing four quarters, delivering an average surprise of 5.24%.īase Volume Improves: During the reported quarter, DGX’s base business revenues were up 10%, supported by base business volume growth of nearly 8%. Quest Diagnostics has an earnings yield of 6.58% compared with the industry’s yield of 3.89%. The renowned provider of diagnostic information services has a market capitalization of $14.86 billion.

Quest diagnostics results