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SECAUCUS, N.J. - Quest Diagnostics (NYSE:DGX), a prominent player in the Healthcare Providers sector with annual revenue exceeding $10 billion, announced Tuesday the development of a new diagnostic laboratory test for Oropouche virus, an emerging infectious disease increasingly found in South and Central America and the Caribbean. According to InvestingPro data, the company maintains a strong market position with a market capitalization of $18.8 billion.
The test, which will be available with a prescription from healthcare providers by the end of July, uses polymerase chain reaction (PCR) technology to identify viral RNA during early infection stages. Quest plans to add serology testing later this quarter to detect antibodies in later infection stages.
Oropouche virus is transmitted to humans through bites from infected midges and some mosquito species. While most infected individuals recover without intervention, the virus can cause severe neurological complications including meningitis and encephalitis. According to the company, U.S. cases have been limited to travelers returning from countries with local transmission.
"Quest plays an essential role in ensuring the U.S. is prepared to respond to potentially dangerous emerging diseases," said Yuri Fesko, Senior Vice President and Chief Medical Officer at Quest Diagnostics, in a press release statement. The company’s financial health score of "GOOD" from InvestingPro reflects its stable market position and consistent performance, including 13 consecutive years of dividend increases.
The diagnostic development follows contracts awarded to Quest by the U.S. Centers for Disease Control and Prevention (CDC) in September 2024 to support testing readiness for emerging infectious diseases. These contracts provide funding to maintain adequate supplies of equipment and reagents needed for rapid response to public health threats.
The test will be performed at Quest’s laboratory in San Juan Capistrano, California. The company noted that Oropouche viral disease presents with symptoms similar to other arboviral diseases such as Dengue, Zika and chikungunya. With Quest’s next earnings report due in 7 days, investors can access comprehensive analysis and additional insights through the detailed Pro Research Report available on InvestingPro, which covers this and 1,400+ other top US stocks.
In other recent news, Quest Diagnostics reported its Q1 2025 earnings, surpassing market expectations with an adjusted earnings per share (EPS) of $2.21, against a forecasted $2.16. The company’s revenue reached $2.65 billion, slightly exceeding the anticipated $2.64 billion. Fitch Ratings elevated Quest Diagnostics’ Long-Term Issuer Default Rating from ’BBB’ to ’BBB+’, citing the company’s strong operational performance and stable outlook. Meanwhile, JPMorgan raised Quest Diagnostics’ price target to $190, maintaining a Neutral stock rating, and adjusted its EPS forecasts for the fiscal years 2025 and 2026. Quest Diagnostics plans to offer an FDA-cleared blood test for Alzheimer’s disease, developed by Fujirebio, later this summer. Additionally, Quest Diagnostics’ shareholders elected directors and approved key proposals at the 2025 Annual Meeting, including the ratification of PricewaterhouseCoopers as the independent auditor. These developments reflect the company’s focus on innovation and strategic growth in the diagnostic sector.
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