Benzinga | Sep 9, 2021 09:55AM EDT

Quest Diagnostics Updates 2021 Outlook On Surging Demand Of COVID-19 Tests

* Since Quest Diagnostics Incorporated (NYSE:DGX) reported its Q2 FY21 financial results, COVID-19 molecular testing volumes were stronger than anticipated through the end of August.

* Related Content: Quest Q2 Earnings Ahead Of Expectation On Recovery Of Non-COVID Business, Issues Mixed FY21 Guidance.

* The demand is expected to continue to be stronger than anticipated because of the surge of the Delta variant. The low end of the Company's outlook now assumes average COVID-19 volumes of at least 40,000 molecular tests per day for the second half of the year.

* Organic testing volumes in the Company's base business remain consistent with its previous outlook.

* Quest Diagnostics expects FY21 sales of $9.84 billion - $10.09 billion, compared to earlier guidance of $9.54 billion- $9.79 billion, compared to the Wall Street sales estimate of $9.79 billion.

* It expects an adjusted EPS of $11.65 - $12.35 (consensus $11.38), compared to prior estimate of $10.65 - $11.35.

* Quest expects an operating cash flow of at least $2.0 billion.

* Also Read: Vapotherm Raises Annual Sales Outlook Amid Surge In COVID-19 Cases.

* Price Action: DGX stock is up 1.30% at $160.06 during the market session on the last check Thursday.