Quest Diagnostics Incorporated (NYSE:DGX) Q4 2023 Earnings Call Transcript

Sam Samad: Yes, that’s correct.

Eric Coldwell: Okay. Second question, a higher mix of hospital reference testing, it sounds like. You talked about trends in hospital reference being above plan being above long-term history. What kind of an impact does that have on gross margin in the quarter?

Jim Davis: Yes. So in general, our reference testing, which is more LDT like than it is the routine testing, as you know, Eric. In general, that carries a higher test margin, higher gross margin. And in general, right, we’re not drawing specimens that are derived or taken in hospitals. So there’s a very little phlebotomy cost involved in reference work. So generally, the operating margin of our hospital-based tests are going to be higher than the average of the business. So that business did grow at a faster rate than our overall book of business, both in Q4 as well as for the total year. So it was good mix.

Operator: And that was our final question for today.

Jim Davis: All right. Well, thank you, everyone, for joining our call, and we look forward to further updates through the year. Everyone, have a great day.

Operator: A replay of the call may be accessed online at www.questdiagnostics.com/investor or by phone at 203-369-3391 for International Callers or 800-934-9421 for domestic callers. Telephone replays will be available from approximately 10:30 a.m. Eastern Time on February 1, 2024, until midnight Eastern Time, February 15, 2024. Thank you for your participation, and you may now disconnect.