9/2/2021, 12:03 PM (Source: TeleTrader)
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COVID testing companies' profits surge amid Delta variant

The United States processed a daily average of 1.2 million COVID-19 tests in August, according to the Department of Health & Human Services. The surge of the Delta variant coinciding with the student's return to school is cited as the main cause of the testing surge, Axios reported on Thursday. As a result, Wall Street is now anticipating unexpectedly high profits for testing companies.

The daily volume of tests ran by Quest Diagnostics is now double what Wall Street analysts have predicted for this time of the year, and a similar scenario is now anticipated for Labcorp's volumes. Financial advisory firm Baird expects the testing spike to add $149 million of profit to Quest, and $96 million of profit for Labcorp by the end of the year.

The current averages don't include federally funded COVID-19 screening programs for students and school staff. Obligatory testing for individuals who chose not to be vaccinated is expected to further contribute to the rise in testing volumes.

Baha Breaking News (BBN) / TT