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Quest Diagnostics Inc DGX

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Quest Diagnostics Shifts Toward Normal as COVID-19 PCR Demand Weakens; No Change to Our FVE

Debbie S. Wang Senior Equity Analyst

Analyst Note

| Debbie S. Wang |

Narrow-moat Quest Diagnostics posted strong second-quarter performance against a weak prior-year period that was hampered by shelter-at-home orders. However, with COVID-19 test tailwinds softening and much tougher comparisons with the second half of 2020 ahead, we’re holding steady on our fair value estimate. Our top- and bottom-line projections for full-year 2021 remain bounded by management’s 2021 outlook, and the slight adjustments we’ve made to reflect strong cost containment were largely offset by our incorporation of a rise in the U.S. corporate tax rate starting in 2022.

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Company Profile

Business Description

Quest Diagnostics is a leading independent provider of diagnostic testing, information, and services in the U.S. The company generates over 95% of its revenue through clinical testing, anatomic pathology, esoteric testing, and substance abuse testing with specimens collected at its national network of nearly 2,300 patient service centers, as well as multiple doctors offices and hospitals. The firm also runs a diagnostic solutions segment that provides clinical trials testing, risk assessment services, and information technology solutions.

Contact
500 Plaza Drive
Secaucus, NJ, 07094
T +1 973 520-2700
Sector Healthcare
Industry Diagnostics & Research
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Aggressive Growth
Employees 49,000

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