Post by luxetvox on Jul 20, 2023 13:12:53 GMT
See below a news item from Bloomberg yesterday on DGX. The source was internal, an analyst from their in-house Health Care team. I post this for a few reasons.
First, granted Quest is much larger than BRLI, but the Opko diagnostics business is not even on the radar of the Bloomberg Health Care team.
Second, there is a level of detail here that is reassuring to investors. That detail is of course provided by the company
Third, the short discussion below begins of course with the base business, which is the lynchpin of the enterprise. Opko's CFO has referenced the base business a couple times in the past, but our management clearly doesn't make it a priority KPI to disclose to shareholders. As an investor, I'd like to know a few details:
*how much of quarterly service revenue is comprised of the base business, in actual revenue and percentage?
*what are the respective revenues of the specialty lines: Oncology, Urology, Women's Health, Strategic Partnerships; and what is the QoQ growth of each of these segments?
*what are gross margins for each of these five areas of revenue from services?
Fourth, the reference to the Haystack Oncology purchase is contextualized within the forecast for EPS.
If PF would allow, and insist on the disclosure of, a similar level of detail about the half-billion plus business of BRLI, then we as investors could digest the good, the bad, and the ugly. And use that data to value the company, or at least the diagnostics division, with more confidence, and accuracy.
Quest's Base Business Steady, Covid Taper Only Doubt: 2Q Preview
Contributing Analysts: Jordan Dahan (Health Care)
(Bloomberg Intelligence) -- Quest's 2023 base business growth assumption of 4.2-5.4% is likely to hold firm after the company upped its forecast by 160 bps at the midpoint in 1Q and utilization trends appear steady. A drop in the Covid-19 revenue assumption shouldn't come as a surprise as cases taper quicker than expected. Management assumes full-year operating margin of 17% with a ramp-up in the back-half of the year after lapping steeper 1H omicron comparisons. Other components of margin progression include pricing gains, stronger volume, a $100 million reduction to SG&A and its Invigorate program targeting 3% in annual cost savings.
EPS guidance of $8.70 remains in line with consensus and accounts for the dilution of the $300 million Haystack Oncology deal. Quest is likely to continue tacking on assets that add exposure toliquid biopsy.
(07/19/23)
Key Points:
2Q Consensus Implies $2.26 Billion in Sales, EPS of $2.26
Full-Year Base Business Growth Guidance Raised in 1Q to 4.2-5.4%
Operating Margin of 16.8% Anticipated by Analysts, Down 90Bps From Year Prior
Adjusted EPS Beat Consensus 15 Out of Past 16 Quarters
First, granted Quest is much larger than BRLI, but the Opko diagnostics business is not even on the radar of the Bloomberg Health Care team.
Second, there is a level of detail here that is reassuring to investors. That detail is of course provided by the company
Third, the short discussion below begins of course with the base business, which is the lynchpin of the enterprise. Opko's CFO has referenced the base business a couple times in the past, but our management clearly doesn't make it a priority KPI to disclose to shareholders. As an investor, I'd like to know a few details:
*how much of quarterly service revenue is comprised of the base business, in actual revenue and percentage?
*what are the respective revenues of the specialty lines: Oncology, Urology, Women's Health, Strategic Partnerships; and what is the QoQ growth of each of these segments?
*what are gross margins for each of these five areas of revenue from services?
Fourth, the reference to the Haystack Oncology purchase is contextualized within the forecast for EPS.
If PF would allow, and insist on the disclosure of, a similar level of detail about the half-billion plus business of BRLI, then we as investors could digest the good, the bad, and the ugly. And use that data to value the company, or at least the diagnostics division, with more confidence, and accuracy.
Quest's Base Business Steady, Covid Taper Only Doubt: 2Q Preview
Contributing Analysts: Jordan Dahan (Health Care)
(Bloomberg Intelligence) -- Quest's 2023 base business growth assumption of 4.2-5.4% is likely to hold firm after the company upped its forecast by 160 bps at the midpoint in 1Q and utilization trends appear steady. A drop in the Covid-19 revenue assumption shouldn't come as a surprise as cases taper quicker than expected. Management assumes full-year operating margin of 17% with a ramp-up in the back-half of the year after lapping steeper 1H omicron comparisons. Other components of margin progression include pricing gains, stronger volume, a $100 million reduction to SG&A and its Invigorate program targeting 3% in annual cost savings.
EPS guidance of $8.70 remains in line with consensus and accounts for the dilution of the $300 million Haystack Oncology deal. Quest is likely to continue tacking on assets that add exposure toliquid biopsy.
(07/19/23)
Key Points:
2Q Consensus Implies $2.26 Billion in Sales, EPS of $2.26
Full-Year Base Business Growth Guidance Raised in 1Q to 4.2-5.4%
Operating Margin of 16.8% Anticipated by Analysts, Down 90Bps From Year Prior
Adjusted EPS Beat Consensus 15 Out of Past 16 Quarters