What's the outlook for DGX's EPS in 2025?
4/3/2025 11:29am
Quest Diagnostics Incorporated (DGX) is projecting a robust growth trajectory for its Adjusted Diluted Earnings Per Share (EPS) in 2025, underpinned by strategic initiatives and financial outlooks:
1. **Strategic Growth Initiatives**: DGX is focusing on strategic partnerships, acquisitions, and advanced diagnostics to drive growth. These initiatives are expected to bolster market access and enhance operational efficiency, which in turn should support EPS growth.
2. **Financial Projections**: The company anticipates a Compound Annual Growth Rate (CAGR) of 7-9% in adjusted diluted EPS beyond 2025. This indicates a strong earnings growth trajectory, with expectations of EPS growth being at the higher end of the industry average.
3. **Recent Performance**: DGX has demonstrated strong earnings performance, with reported diluted EPS of $1.95 for Q4 2024, reflecting a 14.7% increase from the previous year. Adjusted diluted EPS was $2.23, indicating even stronger performance when accounting for non-recurring items.
4. **Market Analysts' Perspective**: Brokers and analysts are optimistic about DGX's EPS outlook for 2025. Leerink Partners, for instance, has issued earnings per share estimates for Q1 2025, reflecting confidence in DGX's continued earnings growth.
In conclusion, Quest Diagnostics is positioned for substantial EPS growth in 2025, driven by strategic initiatives, strong financial performance, and positive analyst sentiment.