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Exploring Quest Diagnostics’ Operational Performance

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Operating expenses

Quest Diagnostics (DGX) incurred selling, general, and administrative expenses of $351.0 million in the second quarter of 2018 as compared with $358.0 million in the second quarter of 2017. This decrease was attributable to lower performance-based compensation costs.

Its amortization on intangible assets, on the other hand, increased from $18.0 million in the second quarter of 2017 to $22.0 million in the second quarter of 2018.

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Quest’s total operating expenses increased from $1.54 billion in the second quarter of 2017 to $1.61 billion in the second quarter of 2018. This jump in operating expenses resulted in the operating income of the company decreasing by $14.0 million to $305.0 million in the second quarter of 2018 as compared with the year-ago period.

Bottom line

Quest Diagnostics’ net interest expense increased from $38.0 million in the second quarter of 2017 to $42.0 million in the second quarter of 2018. Quest’s income taxes, on the other hand, decreased from $94.0 million in the second quarter of 2017 to $42.0 million in the second quarter.

Quest Diagnostics generated net income of $219.0 million in the second quarter of 2018 as compared with net income of $193.0 million in the second quarter of 2017, which translated into net earnings per share of $1.57 in the second quarter of 2018. Its net earnings per share were $1.37 in the second quarter of 2017.

We’ll take a look at Quest Diagnostics’ recent acquisitions in the next part.

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