(Reuters) – Laboratory operator Quest Diagnostics on Tuesday raised its full-year sales forecast after beating third-quarter expectations for revenue and profit, buoyed by a recovery in routine testing.
The company raised its full-year net sales forecast to $9.19 billion to $9.24 billion, from its previous expectations of $9.12 billion to $9.22 billion.
This compares with analysts’ average estimate of $9.18 billion, according to LSEG data.
Sales from Quest’s base business, which includes a range of diagnostic tests for allergies, chronic diseases and cancer, rose 4.6% to $2.27 billion in the third quarter.
That extends a rebound in routine health check-ups delayed due to pandemic-related lockdowns for diagnostic firms like Quest and eases the blow from plunging demand for COVID-19 tests.
Quarterly sales of COVID-19 test kits were down 92%, to $26 million.
The company also raised its 2023 base business sales forecast to $8.99 billion to $9.04 billion, from $8.92 billion to $9.02 billion earlier.
Quest raised the lower end of its annual adjusted profit outlook to $8.65 per share from $8.50, but trimmed the higher end to $8.75 from $8.90. Analysts were expecting adjusted profit of $8.71 per share.
The company posted quarterly net sales of $2.30 billion, beating analysts’ estimates of $2.27 billion, aided by strong demand for its products from physicians and hospitals.
On an adjusted basis, the company posted quarterly profit of $2.22 per share, higher than the $2.19 expectations.
(Reporting by Sriparna Roy in Bengaluru; Editing by Shweta Agarwal and Sriraj Kalluvila)
