MADISON, N.J., Oct. 20 /PRNewswire-FirstCall/ — Quest
Diagnostics Incorporated (NYSE:
DGX), the world’s leading provider of diagnostic testing,
information and services, announced that for the third quarter
ended September 30, 2010, income from continuing operations
increased to $198 million, or $1.13 per diluted share, from $192
million, or $1.02 per diluted share, for the third quarter of 2009.
Third quarter 2010 results include a benefit of $0.08 per share,
primarily associated with the favorable resolution of tax
Third quarter revenues of $1.9 billion were 1.7% below the prior
year level. Clinical testing revenues were 1.7% below the prior
year. Revenue per requisition was 1.3% below the prior year,
and was unchanged from the second quarter level. Clinical testing
volume, measured by the number of requisitions, was 0.3% below the
prior year level.
“We grew earnings in the third quarter despite continued
softness in physician office visits. While revenue was down, we are
confident in the future and are making progress executing our plans
to accelerate profitable growth – by promoting new gene-based
and esoteric tests, enhancing sales effectiveness and improving
operational efficiency,” said Surya N. Mohapatra, Ph.D., Chairman
and Chief Executive Officer. “Furthermore, we are committed to
using our substantial cash flow to generate value for our
shareholders through both acquisitions and share repurchases.
So far this year, we have returned $750 million to our
shareholders through share repurchases, and now have flexibility to
make $250 million of additional repurchases in the fourth quarter.”
For the third quarter, operating income was $337 million, or
18.1% of revenues, compared to $348 million, or 18.4% of revenues,
for the third quarter of 2009. Bad debt expense as a
percentage of revenues was 4.