Why Quest Diagnostics Stock Was Blasting Higher Today

Quest Diagnostics (NYSE: DGX) stock was teasing its all-time high on Thursday, no mean feat for a company that's been publicly traded for decades. The healthcare testing specialist's share price was up by more than 5% in late afternoon action, well ahead of the S&P 500 index's 0.8% gain at that point in the day.

Notching a double beat

The main reason for the bullish move wasn't hard to figure out -- Quest posted its fourth-quarter and full-year 2024 results this morning. Investors were particularly impressed by those quarterly numbers.

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For the period, Quest's revenue amounted to $2.62 billion, representing a sturdy year-over-year increase of nearly 15%. Non-GAAP (adjusted) net income attributable to the company also rose, albeit at a more modest pace of 4% to hit $253 million. That shook out to $2.23 per share.

Both results were good enough to top the consensus analyst estimates. Collectively, pundits tracking Quest's stock were modeling $2.58 billion on the top line. They also underestimated profitability, with an average projection of $2.19 per share for adjusted net income.

In its earnings release, Quest attributed the improvements to a clutch of factors, including a raft of asset acquisitions and the expansion of its product portfolio.

Confident about the future

Quest also proffered full-year 2025 revenue guidance that exceeded the collective analyst forecast. The company anticipates it'll earn $10.7 billion to $10.85 billion this year, a range that sits above the consensus pundit estimate of $10.67 billion. Management's per-share adjusted earnings range is $9.55 to $9.80; the average analyst projection sits within this at $9.72.

The company is one of the leaders in the diagnostics segment, and continues to perform well. The aging American population will require increasingly more healthcare services in the coming years, and this should be a boon for Quest's business, too.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Quest Diagnostics. The Motley Fool has a disclosure policy.