SECAUCUS, N.J. – Quest Diagnostics (NYSE: NYSE:), a outstanding supplier of diagnostic info companies, has introduced the completion of its acquisition of choose laboratory belongings from OhioHealth, a acknowledged not-for-profit well being system. This transfer goals to develop the provision of cost-effective and progressive laboratory companies in Ohio.
The acquisition, for which the monetary particulars stay undisclosed, is about to supply suppliers and sufferers in Ohio entry to Quest’s in depth check menu, community of affected person service websites, and broad well being plan protection. This might additionally result in decrease out-of-pocket bills for a lot of companies.
Following the acquisition, a lot of the outreach testing companies beforehand carried out by OhioHealth will now be carried out at Quest’s full-service laboratory in Pittsburgh, Pennsylvania. OhioHealth will keep possession and operation of its hospital lab community, which caters to inpatient and hospital-based outpatient care, together with anatomic pathology and oncology companies.
Quest Diagnostics provides a full vary of companies designed to help well being techniques and hospitals in enhancing the standard and innovation of their diagnostic laboratory companies. The corporate’s portfolio goals to enhance affected person experiences and scale back prices, making care extra accessible and reasonably priced.
OhioHealth, based mostly in Columbus, Ohio, has been a longtime healthcare supplier since 1891. The group features a community of 15 hospitals and over 200 ambulatory websites, serving a large regional space.
This transaction is a part of Quest Diagnostics’ broader mission to offer insights that may assist enhance well being outcomes. The corporate serves a good portion of American adults and healthcare suppliers, leveraging one of many world’s largest databases of scientific lab outcomes to tell well being selections.
The data reported relies on a press launch assertion from Quest Diagnostics.
In different current information, Quest Diagnostics has been making important strides out there. The corporate’s up to date income expectations replicate a further $100 million, setting the brand new midpoint at $9.54 billion, a 3.1% year-over-year enhance. This rise is primarily as a result of current acquisitions, together with PathAI, Allina Well being, and OhioHealth. Baird has maintained a Impartial score on Quest Diagnostics and barely elevated the value goal to $155, reflecting the raised income steerage and acquisitions.
Evercore ISI has resumed its protection on Quest Diagnostics, assigning an In Line score and establishing a worth goal of $165. This follows the completion of Quest Diagnostics’ acquisition of LifeLabs. The agency’s evaluation tasks lower than 1% income per requisition progress and sees modest accretion from the LifeLabs deal. Waiting for 2025 and past, Evercore ISI forecasts the bottom enterprise will develop at a mid-single-digit charge.
Mizuho has maintained an Outperform score on Quest Diagnostics whereas elevating the value goal to $160 from $155. The revision follows the corporate’s strong second-quarter outcomes for the yr 2024. The corporate’s efficiency was bolstered by steady base enterprise developments, with elevated utilization throughout varied sectors and robust progress in each the doctor and hospital markets.
Quest Diagnostics has accomplished its buy of LifeLabs, a frontrunner within the Canadian diagnostics discipline. The deal is valued at roughly CAN $1.35 billion (USD $1 billion). This acquisition is anticipated to foster progress and enhance affected person care, significantly for Canada’s rising and growing old inhabitants.
Lastly, Quest Diagnostics has entered right into a definitive settlement to accumulate choose belongings of the outreach laboratory companies enterprise from College Hospitals, a number one well being system based mostly in Ohio. This transfer goals to boost entry to Quest’s in depth check menu and community of affected person entry websites throughout Ohio. The acquisition is anticipated to be finalized within the fourth quarter of 2024, pending customary regulatory approvals.
InvestingPro Insights
Quest Diagnostics’ current acquisition of OhioHealth’s choose laboratory belongings aligns with the corporate’s sturdy monetary place and progress technique. In accordance with InvestingPro knowledge, Quest Diagnostics boasts a market capitalization of $16.55 billion, reflecting its important presence within the diagnostic companies trade.
The corporate’s monetary well being is additional underscored by its income of $9.346 billion within the final twelve months as of Q2 2024, with a gross revenue of $3.085 billion throughout the identical interval. This strong monetary efficiency helps Quest’s skill to pursue strategic acquisitions just like the OhioHealth deal, which goals to develop its service choices and market attain.
InvestingPro Suggestions spotlight Quest Diagnostics’ dedication to shareholder worth. The corporate has maintained dividend funds for 21 consecutive years and has raised its dividend for 13 consecutive years. This constant dividend coverage, coupled with a present dividend yield of two.02%, might enchantment to income-focused traders.
Furthermore, Quest’s inventory has proven sturdy efficiency, with a one-year worth whole return of 23.97% as of the newest knowledge. The inventory is at present buying and selling close to its 52-week excessive, which might point out investor confidence within the firm’s progress prospects and strategic initiatives just like the OhioHealth acquisition.
It is value noting that Quest Diagnostics has 9 further InvestingPro Suggestions obtainable, providing additional insights into the corporate’s monetary well being and market place. The following tips can present invaluable context for traders evaluating the potential influence of acquisitions just like the OhioHealth deal on Quest’s long-term progress technique.
This text was generated with the assist of AI and reviewed by an editor. For extra info see our T&C.
