Quest Reports Revenue Drop
Quest Diagnostics, which increased its presence in Central Massachusetts within the last year, reported a 2-percent drop in revenue for its most recent quarter, and lowered revenue expectations by 3.5 percent for the year, the New Jersey-based medical laboratories services provider announced.
Quest reported revenue of $1.79 billion for the quarter that ended Sept. 30, down from $1.82 billion in the same quarter last year. For the first nine months of 2013, the company took in $5.39 billion, down from $5.61 billion.
The company cited changes in health-care reimbursements as one of the reasons for the weaker financial performance.
“We are disappointed with our third-quarter performance, particularly after generating revenues early in the period that were in line with our expectations," said President and CEO Steve Rusckowski. "Health-care utilization and reimbursement continue to be a headwind for our industry, and our results reflect that. As we have said previously, 2013 is a building year that will position us well for 2014 and beyond. We remain focused on executing our five-point strategy."
Quest completed the acquisition of UMass Memorial Medical Center's clinical outreach laboratory business in February, and said it would move UMass operations, as well as those of its Athena Diagnostics business in Worcester, to its new Marlborough site, the former Hewlett-Packard campus, within two years.
On the positive side for Quest, net income from operations more than doubled for the quarter, from $163.1 million last year to $405.1 million. That helped vault the company’s net income above last year’s nine-month pace, from $499.9 million to $706.4 million.
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