Quest Diagnostics Incorporated reported significant financial performance for the third quarter and the first nine months of 2024, reflecting both revenue growth and strategic acquisitions. For the three months ended September 30, 2024, net revenues reached $2,488 million, an increase of 8.5% from $2,295 million in the same period of 2023. For the nine months, revenues totaled $7,251 million, up 4.1% from $6,964 million year-over-year. The Diagnostic Information Services (DIS) segment, which constitutes over 95% of total revenues, saw a 9.0% increase in revenues for Q3 2024, totaling $2,427 million, and a 4.5% increase for the nine-month period, reaching $7,058 million.
Despite the revenue growth, operating income for the third quarter decreased to $330 million from $342 million in Q3 2023, while for the nine months, it fell to $985 million from $995 million. This decline in operating income was attributed to a rise in total operating costs and expenses, which increased by 10.5% to $2,158 million for Q3 and by 5.0% to $6,266 million for the nine months, driven by higher costs associated with recent acquisitions, wage increases, and increased supply expenses.
Net income for the third quarter remained stable at $237 million, while for the nine months, it decreased to $685 million from $703 million in the prior year. Net income attributable to Quest Diagnostics for Q3 2024 was $226 million, slightly up from $225 million in Q3 2023. Earnings per share (EPS) for Q3 2024 were $2.01 (basic) and $1.99 (diluted), compared to $1.99 and $1.96, respectively, in the prior year.
Strategically, Quest Diagnostics has been active in acquisitions, completing transactions totaling approximately $1.8 billion during the nine months, including the acquisition of LifeLabs Inc. for about $1 billion in August 2024. This acquisition contributed $74 million to consolidated net revenues for the third quarter. The company also acquired assets from Lenco Diagnostic Laboratories and PathAI Diagnostics earlier in 2024.
The company has initiated the Invigorate Program, aimed at achieving 3% annual cost savings and productivity improvements to counter inflationary pressures. Restructuring and impairment charges for Q3 2024 totaled $7 million, with a total of $21 million for the nine months.
As of September 30, 2024, Quest Diagnostics reported total assets of $16,095 million, up from $14,022 million at the end of 2023, and total stockholders’ equity increased to $6,809 million from $6,307 million. The company’s long-term debt rose to $5,648 million, reflecting its financing activities, including a $1.85 billion senior notes offering completed in August 2024.
About QUEST DIAGNOSTICS INC
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