Quest Diagnostics 2Q profit rises 9 pct
MADISON, N.J. (AP) — Medical laboratory operator Quest Diagnostics Inc. said Thursday its second-quarter net income rose 9 percent as it cut costs and didn't have to pay costs related to acquisitions.
But revenue was flat, and Quest cut its revenue prediction for the year. The company says it remains focused on boosting productivity and reducing costs, while restoring revenue growth.
For its April-June quarter, the Madison, N.J., company earned $177.7 million, or $1.11 per share, up from $163.1 million, or $1.02 per share, in the same quarter last year. Last year's quarter contained charges for integrating the acquisitions of Celera Corp. and Athena Diagnostics.
Excluding costs for laying off employees and severance for its former CEO Surya Mohapatra, who left the company this year, profit came to $1.17 per share, matching the average prediction of Wall Street analysts polled by FactSet.
Revenue was flat at $1.91 billion, compared with $1.9 billion in the year-ago quarter. Analysts expected $1.94 billion.
Clinical testing revenue rose less than 1 percent, with volume up by less than 1 percent, but revenue per testing request unchanged from a year ago.
Without citing a reason, the company cut its 2012 revenue growth prediction to a range of 1 percent to 2 percent from a previous prediction of 2 percent to 2.5 percent growth. That suggests revenue of $7.59 billion to $7.66 billion. Analysts expect $7.71 billion.
Still, the backed its profit prediction for the year of $4.45 to $4.60 per share, when analysts expect $4.60 per share.