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In previous quarters, Quest Diagnostics has beaten the Street on cost reductions and margin improvement. Maxim Group's Vendetti said that Quest Diagnostic's drug-testing business continues to be a drag on earnings. What's more, a second analyst noted that even though drug testing continues to be a drag, it was less of a drag in the fourth quarter than previous quarters. However, the second analyst agreed with Maxim's Vendetti on the long-term outlook for Quest Diagnostics.
Analysts noted that while the share repurchase may have been timed to show confidence in the stock from Quest Diagnostics management at a time of slightly weaker earnings, it has been on the docket for for some time already, and is no surprise. Analysts said while LabCorp was probably down on Monday due to the negative reaction to Quest Diagnostic's earnings, LabCorp is a different animal headed into , with acquisitions still being digested -- and potentially accretive to earnings.
For both LabCorp and Quest, though, one thing in common is cash flow. Copyright TheStreet. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more.
I agree to TheMaven's Terms and Policy. TheStreet -- Although Quest Diagnostics DGX - Get Quest Diagnostics Incorporated Report reported earnings fourth quarter earnings basically in line with Street estimates, the health care diagnostics company has been down since the opening bell on Monday morning.
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