Quest Diagnostics raises annual forecasts on strong diagnostic testing demand

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(Reuters) -Laboratory operator Quest Diagnostics raised its 2025 profit and revenue forecasts on Tuesday, banking on robust demand for its diagnostic tests, sending the company’s shares up over 3% in premarket trade.

The company now expects adjusted profit for 2025 to range between $9.63 and $9.83 per share, compared with its previous forecast of $9.55 to $9.80 per share.

Quest sees its annual revenue in the range of $10.80 billion to $10.92 billion, above its prior view of between $10.70 billion and $10.85 billion.

Steady demand for non-urgent surgeries, particularly among older Americans, has driven increased demand for diagnostic checkups in recent quarters.

Diagnostic service providers such as Quest and Labcorp have also benefited from agreements to manage hospital laboratories as they seek to expand market share.

Quest’s CEO Jim Davis said the company “realized productivity gains as we continued to deploy automation and digital technologies across our operations.”

The company’s quarterly sales rose 15.2% to $2.76 billion from a year ago, beating analysts’ average estimate of $2.73 billion, according to data compiled by LSEG.

Excluding one-off items, Quest posted a profit of $2.62 per share in the quarter ended June 30, above the average estimate of $2.57.

(Reporting by Puyaan Singh in Bengaluru; Editing by Tasim Zahid)