8-KRegulation FD

QUEST DIAGNOSTICS INC 8-K Report, Regulation FD Disclosure (Jun 3, 2020)

Filed June 3, 2020For Securities:DGX

Summary

Quest Diagnostics Incorporated (DGX) filed an 8-K on June 3, 2020, providing an update on the impact of the COVID-19 pandemic. The company noted that while its base testing volumes (excluding COVID-19 tests) have declined due to the pandemic, they have recovered faster than previously anticipated. This recovery is particularly strong in areas where governmental restrictions are being lifted. Based on current trends in both base and COVID-19 testing, Quest Diagnostics anticipates its adjusted earnings per share for the second quarter of 2020 could range from breakeven to slightly profitable. The company reiterated that the ultimate impact of the pandemic on its financial performance remains uncertain and is contingent on factors beyond its control, including the pandemic's duration, its effect on the healthcare system and economy, and government responses. Quest Diagnostics also announced its participation in a virtual fireside chat at the Jefferies Virtual Healthcare Conference, where management planned to discuss their current perspective on the pandemic's impact.

Key Highlights

  • 1Quest Diagnostics is providing an update on the impact of the COVID-19 pandemic.
  • 2Base testing volumes (excluding COVID-19 tests) have recovered faster than previously expected.
  • 3Recovery in base testing volumes is stronger in regions lifting business restrictions.
  • 4Company anticipates Q2 2020 adjusted EPS to be breakeven to slightly profitable, assuming current trends continue.
  • 5The ultimate financial impact of the pandemic remains highly uncertain due to external factors.
  • 6Management planned to present at the Jefferies Virtual Healthcare Conference to discuss the pandemic's impact.
  • 7The filing includes forward-looking statements subject to risks and uncertainties.

Frequently Asked Questions

This 8-K filing is to provide an update to investors regarding the impact of the COVID-19 pandemic on Quest Diagnostics' business operations and financial outlook, particularly concerning testing volumes and earnings expectations.

While overall testing volumes have materially declined due to the pandemic, the company's base testing volumes (excluding COVID-19 related tests) have recovered faster than anticipated. COVID-19 molecular and antibody testing volumes are also continuing to evolve.

Based on the faster-than-expected recovery in base testing volumes and ongoing COVID-19 testing trends, Quest Diagnostics believes its adjusted earnings per share for the second quarter of 2020 could range from breakeven to slightly profitable.

The company states that the adverse impact on its operating results, cash flows, and financial condition will primarily be driven by the pandemic's severity and duration, its impact on the U.S. healthcare system and economy, and the timing, scope, and effectiveness of governmental responses, all of which are beyond the company's control.