Quest Diagnostics reaffirms FY25 adjusted EPS view $9.55-$9.80, consensus $9.71

Reaffirms FY25 revenue view $10.70B-$10.85B, consensus $10.78B. Sees cash provided by operations $1.45B, and Capital expenditures $500M. For the Q1, the company now expects that worse-than-anticipated weather during the period will create a headwind to revenue of approximately $25M and to EPS of approximately 10c. “We are confident in Quest’s ability to grow at above-market rates in our core physician and hospital channels driven by increased market access, double-digit growth in advanced diagnostics across five key clinical areas, and the contributions of strategic partnerships and acquisitions,” said Jim Davis, Chairman, CEO and President. “We expect our continuous improvement initiatives – including investments in automation, robotics, and AI – to strengthen quality, customer and employee experiences, and productivity. Further, our new Project Nova IT initiative will modernize our systems architecture and lower IT costs over the long-term. These factors are reflected in the long-term outlook we are articulating today, which anticipates revenue growth at a 4-5% CAGR and adjusted EPS growth at a 7-9% CAGR beyond 2025.”