Benzinga | Jul 22, 2021 09:21AM EDT

Quest Q2 Earnings Ahead Of Expectation On Recovery Of Non-COVID Business, Issues Mixed FY21 Guidance

* Quest Diagnostics Incorporated (NYSE:DGX) posted better-than-expected second-quarter results, as vaccinations and the lifting of lockdowns resulted in recovery in its core non-coronavirus testing businesses.

* Q2 adjusted EPS surged almost 125% Y/Y at $3.18, beating the consensus estimate of $2.86.

* Sales came in at $2.6 billion, increased 40% Y/Y, and higher than the Wall Street estimate of $2.4 billion.

* Q2 revenue from the diagnostic information services business, which provides tests for cancer, cardiovascular diseases, infectious diseases, and neurology, was up 40% to $2.6 billion.

* Quest's rival Abbott Laboratories (NYSE:ABT) recorded improvements in its non-COVID-19 businesses as vaccinated Americans become more comfortable visiting doctors.

* "This was the first quarter since 2019 that organic base testing revenues grew in the quarter," Chief Executive Officer Steve Rusckowski said in a statement.

* Outlook: Banking on the improvements, Quest forecast full-year revenue of $9.54 billion - $9.79 billion, higher than the analyst consensus of $9.45 billion.

* It also estimated annual adjusted EPS of $10.65 and $11.35, the mid-pint being lower than the Wall Street estimate of $11.13.

* Price Action: DGX shares are down 0.57% at $135 during the premarket session on the last check Thursday.