Is DGX's Q4 2024 EPS trend sustainable?

**Quest Diagnostics' (DGX) Q4 2024 EPS trend appears to be sustainable** based on the following points:

1. **Consistent Performance**: DGX has a history of consistent performance, as evidenced by its ability to align with analyst EPS projections in Q1 2024 and exceed EPS expectations in Q2 2025. This consistency suggests a strong and stable financial foundation.
2. **Financial Health Indicators**: The company's net income rose by 15.1% to $222 million, indicating strong financial health. Additionally, the adjusted operating income jumped by 21.2% to $409 million, boosting the operating margin to 13.8%. These improvements reflect efficient operations and the ability to generate substantial profits.
3. **Strategic Outlook**: DGX has a positive outlook for 2024, expecting a return to overall revenue growth with projected increases between 1.1% and 2.1%. This guidance, coupled with the company's focus on AI and automation investments, suggests a forward-looking approach that could sustain its EPS trend.
4. **Disciplined Capital Allocation**: The company has shown disciplined capital allocation, as seen in the 10.8% fall in capital expenditures to $92 million. This management of resources can contribute to long-term sustainability by ensuring that investments are made strategically and efficiently.

In conclusion, DGX's Q4 2024 EPS trend appears to be sustainable due to the company's consistent performance, strong financial health indicators, positive strategic outlook, and disciplined capital allocation.