July 18, 2013 / 11:12 AM / 4 years ago

Quest Diagnostics reports third profit miss in a row

2 Min Read

(Reuters) - Laboratory tests provider Quest Diagnostics Inc's (DGX.N) results missed analysts' expectations for the third straight quarter, hurt by a cut in Medicare reimbursements.

The No. 1 lab testing company in the United States reported a second-quarter adjusted profit of $1.06 cents per share from continuing operations on revenue of $1.82 billion.

Analysts on average had expected a profit of $1.09 per share and revenue of $1.84 billion, according to Thomson Reuters I/B/E/S.

Quest also cut the top end of its full-year earnings-per-share guidance to $4.50 from $4.55. The low end remained unchanged at $4.35. It now expects revenue to be 1 to 2 percent below the prior year level.

The company, which has been implementing a $500 million restructuring program, said it sold the royalty rights for an experimental cancer drug to Royalty Pharma for $485 million in cash.

Quest named Mark Guinan as its chief financial officer on Wednesday. Guinan will replace Robert Hagemann who had previously extended his planned departure to assist in the change.

Quest shares closed at $59.80 on the New York Stock Exchange on Wednesday.

Reporting By Adithya Venkatesan and Vrinda Manocha in Bangalore; Editing by Maju Samuel

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