NEW YORK (GenomeWeb) – Quest Diagnostics on Friday said that it expects revenues to grow 3 percent to 5 percent and earnings to grow in the mid- to high-single digits annually from 2017 to 2020.
The Madison, New Jersey-based firm also said it plans to raise its common stock dividend by more than 12 percent to an annual rate of $1.80 per share.
At its investor day presentation today, management will outline its plan to accelerate growth and drive operational excellence, highlighting — among other things — its strategy to grow revenues by 1 percent to 2 percent through acquisitions; its plans to partner with health plans, hospitals, and other risk-bearing organizations to expand Quest's addressable market; its plans to expand access to advanced diagnostics through R&D initiatives, and partnerships with academic institutions, technology and healthcare leaders, and public health agencies; and its strategy to build a business in population health supported by data analytics and extended care services.
The firm also said that it will increase its retail presence by setting up shop in more than 50 Safeway stores by the end of this year, and more than 200 Safeways by the end of 2017. By the end of this month, it will offer direct access testing in two states.
“Our increasing number of partnerships with other healthcare leaders are creating promising opportunities for top and bottom line growth while improving the patient experience and reducing the overall cost of care,” Quest President and CEO Steve Rusckowski said in a statement.
Quest also reiterated its outlook for 2016 with revenues for the year anticipated to grow almost 3 percent to about $7.51 billion. Adjusted earnings per share, excluding amortization, are expected to be in the range of $5.07 to $5.12. Wall Street analysts have projected revenues of $7.51 billion and earnings per share of $5.10 for FY 2016.
Last month, Quest reported third quarter revenues were flat year-over year at $1.89 billion.
Quest's shares were up half a percent at $81.91 in morning trading on the New York Stock Exchange.