Quest Diagnostics Inc. DGX posted net income of $101 million, or 87 cents a share, for the fourth quarter, down from $390 million, or $3.12 a share, in the year-earlier period. Adjusted per-share earnings came to $1.98, ahead of the $1.91 FactSet consensus. Revenue fell 15% to $2.333 billion from $2.744 billion a year ago, also ahead of the $2.257 billion FactSet consensus. The revenue decline was mostly due to a slump in COVID-19 testing revenues, which fell 74.6% to $184 million from $722 million as the pandemic eased from the omicron peak in late 2021. Base business revenue grew 6.3% to $2.149 billion. “In 2023, our focus is on growing our base business and increasing our efforts to drive productivity and expand margins. Our guidance for the full year reflects continued growth in the base business, tailwinds from recent Medicare reimbursement changes, investments to accelerate growth, and declining COVID-19 revenues,” Chief Executive Jim Davis said in a statement. The Secaucus, N.J.-based company is now expecting 2023 revenue of $8.83 billion to $9.03 billion, while FactSet is expecting $9.29 billion. It expects adjusted EPS of $8.40 to $9.00, compared with a FactSet consensus of $9.19. The stock was slightly lower premarket but has gained 9% in the last 12 months, outperforming the S&P 500 SPX which has fallen 10%.
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