Quest Diagnostics Sees Rise in Covid Tests as Delta Variant Surges

According to the Chief Executive of Quest Diagnostics, there hsa been a rise in Covid tests as the Delta variant spreads across the nation.

CEO Steve Rusckowski told CNBC yesterday that the company is seeing an increase in Covid-19 tests as the more contagious delta variant spreads across the country.

“We actually have around 300,000 test capacity per day. That was zero back in March of last year,” Rusckowski explained.

The majority of the positive tests identified by the company this week were of the delta variant, he said.

The company had just reported higher-than-expected second-quarter results with business recovering in its non-Covid services.

The New Jersey-based medical testing company reported adjusted earnings per share of $3.18 on revenue of $2.55 billion. Analysts were waiting for EPS of $2.87 and revenue of $2.38 billion, according to Refinitiv. Revenue was up 39.5% from a year earlier, when the company reported adjusted EPS of $1.42.

The company forecasts full-year revenue between $9.54 billion and $9.79 billion.

“Our base business dropped considerably in April of last year. Our base business was not above 50%, and we just started in March of last year bringing up our Covid testing,” Rusckowski said.

“Today, we actually have around 300,000 test capacity per day. That was zero back in March of last year. So in the second quarter of last year, our base business was down and we’re just starting to bring up our Covid testing.”

“We said our Covid-19 testing business would go down as we saw the recovery, if you will, from the pandemic and it has gone down throughout the first half,” Rusckowski said on “Closing Bell.”

“In the last couple of weeks, and we think it’s related to the delta variant, we started to see a slight increase actually in that Covid testing volume as well.”

Former chief of the Food and Drug Administration, Dr. Scott Gottlieb told CNBC this week, “Vaccinated people aren’t presenting for testing, and a lot of young and healthy people who are predominantly being infected right now also aren’t presenting for testing.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.