Quest Diagnostics Inc. Q3 FY2023 results: revenue $2.3 billion, down 7.7% on the year

Quest Diagnostics Inc. (DGX) reported revenue of $2.3 billion for Q3 FY2023, the quarter ended 30 September 2023, down 7.7% on the same quarter a year earlier. Net income was $225 million, down 12.1% on the year, and diluted earnings per share $1.96. The figures are the company's own, from the 10-Q it filed with the SEC on 25 October 2023.

Revenue$2.3 billiondown 7.7%

Net income$225 milliondown 12.1%

Diluted EPS$1.96

QuarterQ3 FY2023ended 30 September 2023

The quarter, against the one before and a year earlier

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Revenue	2,295	n/a	n/a	n/a
Cost of revenue	1,541	n/a	n/a	n/a
Gross profit	754	n/a	n/a	n/a
Gross margin	32.9%	n/a	n/a
Selling, general and administrative	380	n/a	n/a	n/a
Operating income	342	n/a	n/a	n/a
Operating margin	14.9%	n/a	n/a
Interest expense	41.0	n/a	n/a	n/a
Pre-tax income	299	n/a	n/a	n/a
Income tax	68.0	n/a	n/a	n/a
Effective tax rate	22.7%	n/a	n/a
Net income	225	n/a	n/a	n/a
Net margin	9.8%	n/a	n/a
Diluted EPS	$1.96	n/a	n/a	n/a

$ million except per share. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Operating cash flow	207	n/a	n/a	n/a
Capital expenditure	105	n/a	n/a	n/a
Free cash flow	102	n/a	n/a	n/a
Free cash flow margin	4.4%	n/a	n/a
Depreciation and amortisation	111	n/a	n/a	n/a
Share-based compensation	18.0	n/a	n/a	n/a
Buybacks	0.0	n/a	n/a	n/a
Dividends paid	80.0	n/a	n/a	n/a
Dividend per share	$0.71	n/a	n/a	n/a
Diluted shares, weighted	114m	n/a	n/a	n/a
Shares outstanding at period end	112m	n/a	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Total assets	13,482	n/a	n/a	n/a
Cash and equivalents	143	n/a	n/a	n/a
Receivables	1,281	n/a	n/a	n/a
Inventory	184	n/a	n/a	n/a
Goodwill	7,732	n/a	n/a	n/a
Long-term debt including finance leases	3,946	n/a	n/a	n/a
Operating lease liabilities	505	n/a	n/a	n/a
Shareholders' equity	6,425	n/a	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	2,295	2,288	2,366	2,397	2,488	2,621	2,652	2,761	2,816	2,806	2,895	3,043
Cost of revenue	1,541	1,552	1,595	1,593	1,677	1,763	1,789	1,818	1,867	1,896	1,953	2,016
Gross profit	754	736	771	804	811	858	863	943	949	910	942	1,027
Gross margin	33%	32%	33%	34%	33%	33%	33%	34%	34%	32%	33%	34%
SG&A	380	407	440	416	448	466	476	486	501	504	504	529
Operating income	342	267	300	355	330	361	346	438	386	386	399	459
Operating margin	15%	12%	13%	15%	13%	14%	13%	16%	14%	14%	14%	15%
Interest expense	41.0	46.0	49.0	47.0	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Pre-tax income	299	237	266	314	296	299	276	384	328	330	334	412
Tax rate	23%	17%	25%	24%	22%	23%	21%	25%	23%	25%	22%	21%
Net income	225	192	194	229	226	222	220	282	245	245	252	320
Net margin	10%	8%	8%	10%	9%	8%	8%	10%	9%	9%	9%	11%
Diluted EPS	$1.96	$1.70	$1.72	$2.03	$1.99	$1.95	$1.94	$2.47	$2.16	$2.18	$2.24	$2.84
Operating cash flow	207	527	154	360	356	464	314	544	563	465	278	597
Capital expenditure	105	72.0	104	92.0	106	123	117	108	144	158	114	138
Free cash flow	102	455	50.0	268	250	341	197	436	419	307	164	459
Buybacks	0.0	275	n/a	n/a	n/a	n/a	n/a	n/a	150	n/a	n/a	n/a
Dividends paid	80.0	80.0	79.0	84.0	84.0	84.0	84.0	90.0	89.0	90.0	88.0	96.0
Shares outstanding	112m	111m	111m	111m	112m	111m	112m	112m	111m	110m	111m	110m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 September 2023, filed 25 October 2023, accession 0001022079-23-000157: the filing on EDGAR. All of Quest Diagnostics Inc.'s filings: EDGAR company page.

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