Quest Diagnostics Inc Caliendo‘s Conference Call Commentary

研报英文原文证据摘录

Quest Diagnostics Inc Caliendo‘s Conference Call Commentary

n from Consumer 12/26E

testing). Revenue per requisition was down -2.8% (+2.9% ex-Corewell & UBS Cons.

Fresenius, these two collaborations have greater routine tests than other clinical Q1 2.54 2.50

testing segments). On the other hand, unit price reimbursement is flat, consistent Q2E 2.91 2.83

with more recent trend. Management noted that the two biggest drivers of Q3E 2.74 2.80

organic revenue per requisition were 1) growing tests per accession (now at 4.5 Q4E 2.60 2.61

tests per requisition vs. 3.5-4 tests prior to COVID) and 2) increasing mix of 12/26E 10.80 10.76

consumer testing. Adj. EBIT was $502M (or 16.5% of revenue). Management 12/27E 11.74 11.66

indicated a 70bps y/y headwind from 1) Project Nova (20bps), 2) Corewell and 12/28E 13.02 12.74

Fresenius dilution (30bps) and (3) higher supplemental deferred compensation Kevin Caliendo

(20bps). Analyst

kevin.caliendo@ubs.com

Bad Debt Trends Stable: Management has not seen a meaningful change in bad +1-212-713 3630

debt. DGX confirmed tracking hospital collections closely and has not seen a

deterioration in timing of collections. Additionally, DGX has also been monitoring Andrea Alfonso

Analyst patient collections (e.g. copays/owables), which typically amounts to 5% of

andrea.alfonso@ubs.com

revenue; in fact, these collections have improved over last year. +1-212-713 1342

Reiterating Expectations For HIX Enrollment Impact Of 30bps To Revenue; Brett Gasaway

Thus Far, Modest Impact: Management conveyed comfort with guidance for Analyst

HIX enrollment changes being a 30bps headwind to revenue for the full year. brett.gasaway@ubs.com

DGX clarified that the 20% decline in enrollment seen in the marketplace is far +1-212-713 4820