Quest Diagnostics Inc (DGX) has reported a 59.22 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $164 million, or $1.16 a share in the quarter, compared with $103 million, or $0.71 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $175 million, or $1.33 a share compared with $148 million or $1.13 a share, a year ago.
Revenue during the quarter went up marginally by 1.93 percent to $1,899 million from $1,863 million in the previous year period. Gross margin for the quarter expanded 6 basis points over the previous year period to 38.65 percent. Total expenses were 85.31 percent of quarterly revenues, down from 86.21 percent for the same period last year. This has led to an improvement of 90 basis points in operating margin to 14.69 percent.
Operating income for the quarter was $279 million, compared with $257 million in the previous year period.
However, the adjusted operating income for the quarter stood at $297 million compared to $281 million in the prior year period. At the same time, adjusted operating margin improved 56 basis points in the quarter to 15.64 percent from 15.08 percent in the last year period.
"We delivered strong growth across the board in the first quarter with gains in revenues, EPS, operating income, margins and operating cash flow," said Steve Rusckowski, chairman, president and chief executive officer. "Growth in the quarter was driven by expanding relationships with hospital health systems. Our agreement with PeaceHealth in the Pacific Northwest announced in the first quarter will further bolster growth later in the year."
For fiscal year 2017, Quest Diagnostics Inc forecasts revenue to be in the range of $7,640 million to $7,720 million. The company expects diluted earnings per share to be in the range of $4.73 to $4.88 and expects diluted earnings per share to be in the range of $5.45 to $5.60 on adjusted basis.
Operating cash flow improves significantly
Quest Diagnostics Inc has generated cash of $196 million from operating activities during the quarter, up 28.10 percent or $43 million, when compared with the last year period.
The company has spent $22 million cash to meet investing activities during the quarter as against cash outgo of $190 million in the last year period.
The company has spent $166 million cash to carry out financing activities during the quarter as against cash inflow of $32 million in the last year period.
Cash and cash equivalents stood at stood at $367 million as at Mar. 31, 2017.
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