COVID Volume Maintained; Turning Attention to Base Business
The view that COVID testing will come in higher than DGX has guided is not novel. We have heard "everyone knows that" and "sell it into the print" more than once. Our outlook for a sustained level of testing and a recovery in the base business is perhaps a less widely held view. The DGX bi-weekly updates on COVID testing have been coming in better than we originally modeled. As Delta Variant recedes, the need for testing will continue for several quarters and mitigation protocols are sustained alongside the re-emergence of another variant AND the flu season. We also expect the base business to continue to accelerate beyond its current recovery and believe there is a large pool of pent up demand which is a key driver of our 2022 estimates and upside versus consensus.
Key Slides
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Thomas Tobin
Managing Director
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