Quest Diagnostics cuts full-year revenue view

July 19 Thu Jul 19, 2012 4:46pm IST

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July 19 (Reuters) - Quest Diagnostics Inc, the No. 1 clinical laboratory-testing company, lowered its revenue forecast for the year but kept profit estimates unchanged as it continues to cut costs to improve margins.

The company expects revenue to grow between 1 percent and 2 percent in 2012. It had previously forecast a growth of between 2 percent and 2.5 percent. Quest maintained its previous earnings outlook of $4.45 to $4.60 a share.

Net income from continuing operations was $178 million, or $1.11 per share, in the second quarter, compared with $164 million, or $1.02 per share, a year earlier.

Excluding special items, the company earned $1.17 a share, matching analysts' estimates.

Revenue was nearly flat $1.91 billion, compared with analysts' estimate of $1.94 billion.

"Quest Diagnostics delivered earnings growth and margin expansion in the quarter, despite revenues that were essentially unchanged from a year ago," said CEO Steve Rusckowski.

Quest shares closed at $63.02 Wednesday on the New York Stock Exchange.