8-KOther Events

QUEST DIAGNOSTICS INC 8-K Report (Nov 14, 2001)

Filed November 14, 2001For Securities:DGX

Summary

Quest Diagnostics Incorporated (DGX) filed an 8-K on November 14, 2001, to provide updated financial outlook information ahead of a presentation by its CEO at the Credit Suisse First Boston Health Care Conference. The company reaffirmed its previously issued guidance, indicating confidence in achieving analyst expectations for the fourth quarter of 2001. This suggests a stable performance trajectory as the year concludes. Looking ahead, Quest Diagnostics anticipates robust earnings per diluted share growth for both the full year 2001 and the upcoming year 2002. The company expects full-year 2001 EPS before special items to grow by more than 65%, and for 2002, it projects EPS growth exceeding 30%. This latter figure is before the anticipated positive impact of a change in goodwill accounting effective January 1, 2002, which is expected to add an additional $0.35 per diluted share. Investors can interpret this as continued strong operational performance coupled with a favorable accounting change.

Key Highlights

  • 1Quest Diagnostics reaffirmed its previously issued financial guidance for Q4 2001.
  • 2The company is comfortable with the consensus analyst expectation for Q4 2001 diluted EPS of $0.48.
  • 3Full-year 2001 diluted EPS (before special items) is expected to grow by more than 65%.
  • 4Quest Diagnostics projects 2002 diluted EPS growth to exceed 30%.
  • 5A change in goodwill accounting, effective January 1, 2002, is expected to add $0.35 per diluted share in 2002.
  • 6The CEO expressed high confidence in the company's ability to deliver sustainable outstanding performance for shareholders.
  • 7The filing serves to update investors on the company's outlook in compliance with Regulation FD.

Frequently Asked Questions

The main purpose of this 8-K filing is to update investors on Quest Diagnostics' financial outlook and reaffirm its previously issued guidance, in compliance with Regulation FD, ahead of the CEO's presentation at the Credit Suisse First Boston Health Care Conference.

Quest Diagnostics is comfortable with the consensus analyst expectation for fourth quarter 2001 diluted earnings per share of $0.48, as reported by First Call.

For the full year 2001, Quest Diagnostics expects earnings per diluted share before special items to grow more than 65%. For 2002, the company anticipates earnings per share growth in excess of 30%, excluding the positive impact of a change in goodwill accounting.

The change in goodwill accounting, which becomes effective on January 1, 2002, is expected to provide an additional benefit of $0.35 per diluted share to the company's 2002 earnings.