Quest Diagnostics reported another quarter of modest revenue gains as it refocuses its business. Its yearly results were just slightly better.
The Madison, N.J.-based clinical lab provider reported $1.85 billion in fourth-quarter revenues, up 0.6%, when excluding revenue from the company's clinical-trials testing business, which was folded into its Q2 Solutions joint venture with Quintiles. Revenue from the company's diagnostic-information services grew by just 0.4%, and lab order volume grew by a slight 0.3%.
Quest reported $188 million in profit during the three months ended Dec. 31, down just 1.1% from the prior year. Thanks to lower taxes, Quest's bottom line growth would have been flat if not for a 20% jump in net income attributable to non-controlling interests.
Restructuring and integration charges also had an impact on the company's bottom line. Quest CEO Steve Rusckowski said the company is lowering its costs by removing inefficiencies and recommitting to good customer service.
The company reported fiscal 2015 revenue of $7.5 million, up 2% when excluding the clinical-trials business. Net income was $709 million, up 28%, including $189 million in gains from the incorporation of the clinical-trials business into the Q2 Solutions joint venture.
Adjusted full-year income from continuing operations, which excluded the joint venture gains, restructuring charges, income tax benefits and other financial charges, was $640 million, up 7% from the year prior.
As patient utilization and reimbursement have dropped, Quest has tried to supplement its income by acquiring or managing hospital laboratory departments, including recent deals with Hartford HealthCare and Barnabas Health. "We continue to be encouraged by the robust pipeline of opportunities we have developed," Rusckowski said.
Quest expects fiscal 2016 revenues to between $7.52 billion and $7.59 billion, up 1.5% to 2.5% from last year when excluding the clinical-trials business. Adjusted diluted earnings per share, excluding amortization expenses, are expected to be between $5.02 and $5.17.
