Revenue during the quarter went up marginally by 0.65 percent to $1,861 million from $1,849 million in the previous year period. Gross margin for the quarter contracted 14 basis points over the previous year period to 37.67 percent. Total expenses were 85.17 percent of quarterly revenues, down from 87.07 percent for the same period last year. This has led to an improvement of 190 basis points in operating margin to 14.83 percent.

Operating income for the quarter was $276 million, compared with $239 million in the previous year period.

However, the adjusted operating income for the quarter stood at $305 million compared to $288 million in the prior year period. At the same time, adjusted operating margin improved 81 basis points in the quarter to 16.39 percent from 15.58 percent in the last year period.

"We grew revenues, operating income, margins and operating cash flow in the fourth quarter, capping a strong year in which we achieved our commitments and created value for shareholders," said Steve Rusckowski, chairman, chief executive officer and president. "We are laser focused on our two point strategy to accelerate growth and continue to drive operational excellence. Revenue growth in the quarter came from expanding relationships with hospital health systems and strength in several of our advanced diagnostic offerings. Our guidance for full year 2017 reflects expectations for continued acceleration of top-line growth and is consistent with the earnings outlook we provided at our Investor Day in November."

For financial year 2017, Quest Diagnostics Incorporated projects revenue to be in the range of $7,640 million to $7,720 million. It forecasts diluted earnings per share to be in the range of $4.65 to $4.80. It forecasts diluted earnings per share to be in the range of $5.37 to $5.52 on adjusted basis for the same period.

The company has spent $152 million cash to meet investing activities during the year as against cash outgo of $362 million in the last year.

The company has spent $691 million cash to carry out financing activities during the year as against cash outgo of $518 million in the last year period.

Cash and cash equivalents stood at $359 million as on Dec. 31, 2016, up 169.92 percent or $226 million from $133 million on Dec. 31, 2015.

Working capital increases sharply
Quest Diagnostics Incorporated has recorded an increase in the working capital over the last year. It stood at $550 million as at Dec. 31, 2016, up 67.68 percent or $222 million from $328 million on Dec. 31, 2015. Current ratio was at 1.56 as on Dec. 31, 2016, up from 1.28 on Dec. 31, 2015.

Debt moves up marginally
Quest Diagnostics Incorporated has witnessed an increase in total debt over the last one year. It stood at $3,734 million as on Dec. 31, 2016, up 2.27 percent or $83 million from $3,651 million on Dec. 31, 2015. Total debt was 36.97 percent of total assets as on Dec. 31, 2016, compared with 36.65 percent on Dec. 31, 2015. Debt to equity ratio was at 0.80 as on Dec. 31, 2016, up from 0.77 as on Dec. 31, 2015. Interest coverage ratio improved to 7.67 for the quarter from 6.64 for the same period last year.