(Reuters) – Laboratory operator Quest Diagnostics Inc beat estimates for quarterly profit on Wednesday, as people returned for regular checkups and tests that were delayed during a large part of the COVID-19 pandemic.
Non-COVID testing at companies such as Quest and rival Labcorp was hit as people delayed routine health check-ups following pandemic-led lockdowns, but that demand has now started to normalize while COVID testing sales have fallen.
Sales from Quest’s base business, excluding COVID products, rose 9.5% to $2.3 billion in the second quarter.
Last week, medical device maker Abbott Laboratories also reported an increase in demand for its diagnostic products, excluding COVID-related sales.
At Quest, quarterly global sales of its COVID-19 test kits – which had boosted revenue for the company during the pandemic – continue to decline further, registering a 88.3% plunge to $41 million as the U.S. government ended the COVID-19 Public Health Emergency in May.
The company has raised its 2023 sales forecast for its base business to $8.92 billion to $9.02 billion, from a previous view of $8.78 billion to $8.88 billion.
Quest also expects adjusted profit for 2023 between $8.50 and $8.90 compared with its previous forecast of $8.45 per share to $8.95 per share.
Analysts expect full-year adjusted profit at $8.7 per share.
Excluding one-off items, the company posted a profit of $2.30 per share for the quarter ended June 30, higher than analysts’ average estimate of $2.27 per share, according to Refinitiv data.
(Reporting by Khushi Mandowara in Bengaluru; Editing by Shailesh Kuber)
