Quest Diagnostics Raises Annual Forecast After Beating Q3 Expectations, Despite Decline in COVID-19 Test Sales

Routine testing recovery offsets 92% drop in quarterly COVID-19 kit sales, prompting Quest Diagnostics to raise full-year sales forecast to up to $9.24 billion.

Quest Diagnostics has raised its full-year net sales forecast from $9.12bn-$9.22bn to $9.19bn-$9.24bn after beating Q3 revenue and profit expectations, despite a decline in COVID-19 test sales.
The company's Q3 performance benefited from a 4.6% increase in Quest's base business sales to $2.27bn, which includes a variety of diagnostic tests for allergies, chronic diseases, and cancer.
Sales of COVID-19 test kits in Q3 dropped by 92% to $26mn, but the company still raised its full-year sales forecast due to strong recovery in routine testing.
Quest Diagnostics has also increased the lower end of its annual adjusted profit outlook from $8.50 to $8.65 and trimmed the higher end from $8.90 to $8.75.
The laboratory operator posted Q3 net sales of $2.3bn, surpassing analysts' estimates of $2.27bn due to strong demand for its products from physicians and hospitals.