Guidance Clips Quest
Shares of Quest Diagnostics (DGX) sank 3% Thursday after the lab specialist guided lower for 2007.
The diagnostic test outfit earned $151 million, or 77 cents a share, in the fourth quarter, vs. $149 million, or 73 cents a share, in the year-ago period. Analysts surveyed by Thomson First Call expected Quest to earn 74 cents a share.
Revenue grew 8.5% to $1.55 billion, thanks in part to Quest's acquisition of LabOne in November 2005 and Focus Diagnostics in July of last year. Analysts expected revenue of $1.57 billion.
For 2007, the company expects earnings of between $2.70 and $3 a share on $6 billion to $6.2 billion in revenue. Analysts were expecting earnings of $3.21 a share on sales of $6.4 billion for the year.Quest's 2007 estimates reflect reductions related to the anticipated impact of contract changes, the company said in a press release Thursday. Last October, huge insurer UnitedHealth (UNH) dropped Quest in favor of rival LabCorp (LH), saying LabCorp was cheaper. Shares fell $1.58 to $49.48.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV