Quest (DGX) Q4 2024 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, April 21, 2026 astatine 10:26 AM CDT 40 min read

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Thursday, Jan. 30, 2025 astatine 8:30 a.m. ET

• Chairman, Chief Executive Officer, and President — James E. Davis

• Executive Vice President and Chief Financial Officer — Samir “Sam” Samad

Jim Davis: Thanks, Shawn, and bully morning, everyone. In the 4th quarter, we delivered awesome gross maturation of astir 15%, including astir 5% integrated growth, portion besides improving our profitability. For the afloat year, we drove gross maturation of adjacent to 7%, including astir 3% integrated growth. In 2024, our squad completed 8 acquisitions, including LifeLabs successful Canada and 4 infirmary outreach laboratory businesses successful the US. We besides expanded our Advanced Diagnostics paper and drove sustained double-digit maturation successful respective objective areas during the year. In addition, we attracted caller concern crossed the physician, hospital, and user channels, portion besides forming caller relationships with wellness plans to widen our geographic reach.

Our investments successful automation successful AI delivered improvements successful quality, lawsuit experience, and productivity during the 4th and passim each of 2024, which helped america present connected our yearly 3% Invigorate savings and productivity targets. We besides meaningfully improved worker retention arsenic we strengthened our presumption arsenic leader of choice. This morning, we provided guidance for 2025 that reflects our assurance successful the halfway spot of our business, continuing robust utilization, and the momentum from acquisitions we completed successful 2024. These dynamics presumption america favorably to accelerate gross and net maturation successful 2025. Now, I'll recap our strategy and sermon highlights from the 4th quarter.

Then Sam volition supply much item connected our fiscal results and speech astir our fiscal guidance for 2025. Our strategy to thrust maturation is focused connected delivering solutions that conscionable the evolving needs of our halfway customers, physicians, hospitals, and consumers. We alteration maturation crossed our lawsuit channels done Advanced Diagnostics, with an aggravated absorption connected faster-growing objective areas, including encephalon health, precocious cardiometabolic, and molecular genomics and oncology. In addition, acquisitions are a cardinal maturation driver, with an accent connected accretive outreach purchases, arsenic good arsenic different autarkic labs. Our strategy besides includes driving operational improvements crossed the business, with the strategical deployment of automation and AI to amended quality, service, efficiency, and the workforce experience.

Here are a fewer cardinal updates connected the advancement we person made successful these areas successful the 4th fourth of 2024. Please enactment that my pursuing comments are focused chiefly connected our US operations. In doc laboratory services, we delivered precocious single-digit gross growth, driven chiefly by beardown integrated maturation and contributions from acquisitions successful the US. As a reminder, volumes from some infirmary outreach and autarkic laboratory acquisitions originate successful the doc offices. Last month, we closed our acquisition of the outreach laboratory concern of University Hospitals successful Ohio, and completed the modulation of the concern successful January.