- Idexx Labs has adjusted its full-year revenue forecast to a range of $3.89 billion to $3.95 billion, down from its previous range of $3.90 billion to $3.97 billion.
- Second quarter earnings per share (EPS) came in at $2.44, compared to $2.67 last year, and missed the estimated $2.88.
- The company reported second quarter revenue of $1.00 billion, marking a 6.4% year-over-year increase, but slightly below the $1.01 billion estimate.
- Companion Animal Group (CAG) revenue was $922.3 million, up 6.4% year-over-year, but under the estimate of $925.1 million.
- Water revenue rose to $46.7 million, an 8.6% increase year-over-year, surpassing the $45.6 million estimate.
- Livestock, Poultry, and Dairy (LPD) revenue was $30.3 million, a modest 1.3% increase year-over-year, beating the estimate of $29.5 million.
- Other revenues totaled $4.25 million, up 5.2% year-over-year and higher than the estimated $3.89 million.
- Gross margin improved to 61.7% from 60.7% last year, also better than the estimated 60.9%.
- Operating income for the second quarter was $263.8 million, reflecting an 11% decrease year-over-year and below the $315.6 million estimate.
- Updated 2024 revenue guidance projects growth of 6.2% to 7.8%, driven by a projected 5.7% to 7.3% increase in CAG Diagnostics recurring revenue.
- 2024 EPS outlook is now between $10.31 and $10.59, a reduction of $0.56 per share at the midpoint.
- The reduction in EPS reflects a $0.56 per share discrete litigation expense accrual.
- Idexx’s innovative testing platforms and solutions continue to benefit its customers, supporting long-term growth in pet healthcare standards.
- Company executives laud solid global growth and strong operational performance due to high levels of execution by IDEXX teams.
- Market analysts currently have 6 buy ratings, 6 hold ratings, and 1 sell rating for Idexx Labs.
IDEXX Laboratories on Smartkarma
On Smartkarma, independent analysts like Baptista Research are closely following IDEXX Laboratories, providing insightful coverage on the company’s performance and growth drivers. In one report titled “IDEXX Laboratories: Fusion Of Innovation & Service Excellence In Veterinary Diagnostics! – Major Drivers,” IDEXX started 2024 on a positive note with strong profit gains and solid organic revenue growth. The first quarter saw an overall revenue increase of 7%, driven by a 7% organic growth in Companion Animal Group (CAG) Diagnostic recurring revenues despite adverse weather effects.
In another analysis by Baptista Research titled “IDEXX Laboratories: Growing Global Direct Commercial Capability & Other Major Drivers,” the company’s 2023 performance was highlighted. IDEXX reported an 8% organic revenue increase in Q4, mainly fueled by gains in CAG Diagnostic recurring revenues. Operating profits also rose, with a 10% increase on a comparable basis, supported by robust gross margin gains and operational expenditure leverage. This coverage showcases the positive outlook and growth potential that analysts are observing in IDEXX Laboratories.
A look at IDEXX Laboratories Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma’s Smart Scores, IDEXX Laboratories has a positive long-term outlook overall. With a strong Growth score of 4, the company is expected to expand and increase its market presence in the future. Additionally, IDEXX Laboratories have received solid Resilience and Momentum scores of 3, indicating that the company is well-positioned to weather economic fluctuations and has positive momentum in its stock performance.
Although IDEXX Laboratories scored lower in Value and Dividend with scores of 2 and 1 respectively, the company’s focus on growth and resilience suggests a promising future. With its core business in providing diagnostic solutions for veterinary, food, and water testing, as well as operating veterinary reference laboratories globally, IDEXX Laboratories is poised to benefit from the increasing demand for quality diagnostic services in these sectors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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