Quest Diagnostics Inc. (DGX), provider of diagnostic information services, reported that its net income attributable to the company for the third quarter ended September 30, 2014 dropped to $129 million from last year's $405 million, with earnings per share declining to $0.88 from $2.68 last year.
For the third quarter of 2014, reported income from continuing operations was $129 million, or $0.88 per diluted share. Income from continuing operations in the third quarter of 2014 was negatively impacted by $32 million after tax, or $0.22 per diluted share, primarily related to restructuring and integration costs associated with recent acquisitions and the company's ongoing efforts to drive operational excellence and simplify the organization.
Third quarter 2013 results were favorably impacted by the gain on the sale of Ibrutinib royalty rights of approximately $300 million after tax, or $1.97 per diluted share. In addition, reported income from continuing operations was negatively impacted by a loss on sale of the Enterix business of approximately $25 million after tax, or $0.17 per share, as well as by $24 million after tax, or $0.16 per diluted share, of restructuring and integration costs. In the third quarter of 2013, reported income from continuing operations was $403 million, or $2.66 per diluted share.
Adjusted income from continuing operations grew to $161 million, or $1.10 per share, compared to $154 million, or $1.02 per share, for 2013. Analysts polled by Thomson Reuters expected the company to report earnings of $1.08 per share for the quarter. Analysts' estimates typically exclude special items.
Net revenues were $1.904 billion up from $1.788 billion in the previous year. Wall Street expected revenues of $1.87 billion.
For 2014, the company estimates results from continuing operations, before special items, as follows: Adjusted earnings per share is now expected to be between $4.03 and $4.07, compared to previous guidance of between $4.00 and $4.10. Revenues are expected to increase approximately 3.5% compared to the prior year, versus previous guidance of up 2.5% to 3.5%. Wall Street currently is looking for fiscal year 2014 earnings of $4.05 per share on annual revenues of $7.36 billion.
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