DOW JONES NEWSWIRES
Quest Diagnostics Inc. (DGX) reversed a year-earlier loss in the
fourth quarter caused by red ink from discontinued operations as
testing volume dropped slightly.
The diagnostic-testing company reported net income of $169.8
million, or 87 cents a share, compared with a year-earlier net loss
of $5.3 million, or 3 cents a share, caused by a $190 million
charge related to an investigation of NID, a test-kit manufacturing
subsidiary closed in 2006. Prior-year earnings from continuing
operations were 79 cents.
Revenue increased 1.7% to $1.8 billion as revenue per
requisition rose 2.8%.
Analysts' estimates were for per-share earnings of 80 cents on
revenue of $1.82 billion, according to a poll by Thomson
Reuters.
Clinical-testing revenue rose 2.3% despite a 0.4% decline in
volume as drug-abuse testings, which are sensitive to job-hiring
volume, dropped.
Quest offers a variety of tests, from routine blood work to
sophisticated genetic tests, and no one type provides a large
portion of its revenue.
Earlier this month, Quest admitted it provided possibly wrong
results for thousands of vitamin D tests in the past two years. The
company said it had fixed the problem and is offering free retests,
but the incident could raise calls for more regulation of
diagnostic testing just as it is playing a more important role in
guiding medical treatment.
Looking ahead, the company predicted 2009 earnings of $3.50 to
$3.70 a share on revenue growth of about 3%. Analysts were looking
for earnings of $3.55 a share on revenue growth of 4% to $7.5
billion.
Quest's shares closed at $46.58 on Friday and didn't trade
premarket.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com
-By Tess Stynes, Dow Jones Newswires; 201-938-2473;
tess.stynes@dowjones.com
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