(Reuters) – Quest Diagnostics raised its 2024 profit and revenue forecasts on Tuesday, banking on robust demand for its health tests.
Demand for diagnostic tests has grown in recent quarters as more people, especially older adults, caught up on surgeries deferred during the pandemic.
“This performance is due to growth of new physician and hospital customers, more favorable test mix that includes greater adoption of advanced diagnostics,” Quest CEO Jim Davis said.
The laboratory operator now expects full-year adjusted profit between $8.80 and $9 per share versus its previous forecast of $8.72 to $8.97 per share.
Analysts had expected $8.86 per share, according to LSEG data.
Quest Diagnostics also lifted its 2024 revenue forecast to a range of $9.50 billion to $9.58 billion, up from $9.40 billion to $9.48 billion.
The company said its updated forecast does not include the impact of its pending acquisition of Canada-based LifeLabs, given the uncertainty around when the transaction will close.
Earlier this month, Quest said it will buy LifeLabs from pension plan owner OMERS for about C$1.35 billion ($981.53 million), including net debt, to expand into Canada.
It still expects the deal to close in the second half of the year.
Quest, which offers a range of diagnostic tests, including those for allergies, chronic diseases and cancer, reported a revenue of $2.40 billion in the second quarter, beating estimates of $2.39 billion.
On an adjusted basis, the company earned $2.35 per share, above estimates of $2.34 per share.
($1 = 1.3754 Canadian dollars)
(Reporting by Puyaan Singh in Bengaluru; Editing by Shreya Biswas)
