Full Press Release Details
Quest Diagnostics to Discuss Strategic
Priorities to Drive Growth and Create Shareholder Value at 2023 Investor Day
SECAUCUS, N.J., March 16, 2023 -- At a meeting with analysts and
investors at its Investor Day, members of the executive leadership team of Quest Diagnostics Incorporated (NYSE: DGX), the world's leading
provider of diagnostic information services, will discuss the company's priorities to grow revenues and create shareholder value. The
company is also updating its long-term financial outlook to extend from 2023 through 2026.
"We have made refinements to our strategy to accelerate
growth from our physician and hospital customers, and are building strong platforms to win in the important areas of molecular genomics
and oncology as well as consumer health," said Jim Davis, CEO and President. "In addition, we have a range of initiatives underway
to continue to drive operational productivity while further improving the customer experience. For the 2023 through 2026 period, we expect
to generate revenues at a mid single-digit CAGR and adjusted EPS at a high single-digit CAGR."
At the meeting, members of the company's executive leadership
team will highlight strategic initiatives underway to drive growth, including:
The company will also discuss its capital deployment strategy at
Mr. Davis continued:
"Quest's nearly 50,000 employees are united by our common purpose, which is: Working together to create a healthier world,
one life at a time. They certainly brought our purpose to life during the pandemic and live it every day. Inspired by our employees, we
recently introduced this new purpose, which serves as a compass for our business strategy evolution, growth and culture."
Guidance for Full Year 2023
The Company's guidance for 2023 remains unchanged as follows:
| Low | High | ||
| Net revenues | $8.83 billion | $9.03 billion | |
| Net revenues decrease | (10.7)% | (8.6)% | |
| Base business revenues (a) | $8.65 billion | $8.75 billion | |
| Base business revenues increase | 2.6% | 3.8% | |
| COVID-19 testing revenues | $175 million | $275 million | |
| COVID-19 testing revenues decrease | (88.0)% | (81.1)% | |
| Reported diluted EPS | $7.61 | $8.21 | |
| Adjusted diluted EPS | $8.40 | $9.00 | |
| Cash provided by operations | At least $1.3 billion | ||
| Capital expenditures | Approximately $400 million |
(a) excludes COVID-19 testing
The additional table attached
below includes reconciliations of non-GAAP adjusted measures to GAAP measures.
*Note on Non-GAAP Financial Measures
As used in this press release
the term "reported" refers to measures under accounting principles generally accepted in the United States ("GAAP").
The term "adjusted" refers to non-GAAP operating performance measures that exclude special items such as restructuring and integration
charges, amortization expense, and excess tax benefits ("ETB") associated with stock-based compensation.
The company has provided a compound annual growth rate projection for
2023 to 2026 of high single-digits for adjusted diluted EPS, which is a non-GAAP measure. The company
is unable to present a reconciliation of adjusted diluted EPS to reported diluted EPS, the most comparable GAAP measure due to the inherent
uncertainty and variability in the nature and amount of special items referenced above, and the amount of these items could be significant
in any of the associated periods.
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
Participating in Investor Day
Advance registration is required. To register for the event,
please go to: Quest Diagnostics Investor Day 2023 Registration.
A live webcast of the event will be broadcast on the Quest
Diagnostics Investor Relations website.
A copy of the presentation materials discussed at the meeting
and an archived copy of the webcast will be available on the Quest Diagnostics Investor Relations website.
About Quest Diagnostics
Quest Diagnostics empowers people to take action to improve
health outcomes. Derived from the world's largest database of clinical lab results, our diagnostic insights reveal new avenues to identify
and treat disease, inspire healthy behaviors and improve health care management. Quest Diagnostics annually serves one in three adult
Americans and half the physicians and hospitals in the United States, and our nearly 50,000 employees understand that, in the
right hands and with the right context, our diagnostic insights can inspire actions that transform lives. www.QuestDiagnostics.com.
The statements in this press release which are not historical facts
may be forward-looking statements, including statements regarding our projected results for future periods. 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, 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 regulations, changing relationships
with customers, payers, suppliers or strategic partners 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.
Shawn Bevec (Investors):
Dennis Moynihan (Media):
ADDITIONAL TABLES FOLLOW
| Low | High | ||
| Diluted EPS | $7.61 | $8.21 | |
| Restructuring and integration charges (a) | 0.21 | 0.21 | |
| Amortization expense (b) | 0.73 | 0.73 | |
| ETB | (0.15) | (0.15) | |
| Adjusted diluted EPS | $8.40 | $9.00 |