Core Viewpoint - The market anticipates Idexx Laboratories (IDXX) will report a year-over-year increase in earnings driven by higher revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Idexx is expected to report quarterly earnings of $3.31 per share, reflecting a year-over-year increase of +35.7% [3]. - Revenues are projected to reach $1.07 billion, which is a 6.3% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.74% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Idexx is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.34%, suggesting a bullish outlook on earnings prospects [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - Idexx currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Idexx was expected to post earnings of $2.92 per share but actually delivered $2.96, resulting in a surprise of +1.37% [13]. - Over the past four quarters, Idexx has exceeded consensus EPS estimates three times [14]. Conclusion - Idexx is viewed as a compelling candidate for an earnings beat, but investors should consider other factors influencing stock performance ahead of the earnings release [17].

Core Insights - IDEXX Laboratories, Inc. (IDXX) is scheduled to release its second-quarter 2025 results on August 4, before the market opens [1] - In the last reported quarter, the company achieved adjusted earnings per share (EPS) of $2.96, exceeding the Zacks Consensus Estimate by 1.37% [1] - The company has beaten earnings estimates in three of the last four quarters, with an average surprise of negative 0.09% [1] Revenue and EPS Estimates - The Zacks Consensus Estimate for Q2 revenues is $1.07 billion, reflecting a 6.3% increase from the previous year [2] - The Zacks Consensus Estimate for EPS is $3.31, indicating a rise of 35.7% year-over-year [2] - Earnings estimates have increased by 0.6% to $3.31 in the past 30 days [3] Performance Factors - The Companion Animal Group (CAG) is expected to show strong performance due to global net price improvements and higher volumes, particularly in diagnostics [4] - IDEXX VetLab consumables revenue growth is anticipated from higher price realization and volume increases, supported by an expanded active installed instrument base [4] - Reference laboratory diagnostic services are expected to see increased revenues from higher global price realization and testing volumes, although rapid assay revenues may be impacted by lower U.S. clinical visits [5] International and Innovation Impact - International CAG Diagnostic recurring revenues are likely to benefit from new business gains and an expanded premium instrument installed base [6] - IDEXX's recent innovations, such as the IDEXX Cancer Dx diagnostic panel, are expected to positively impact second-quarter revenues [7] - Growth in Veterinary Software, Services, and Diagnostic Imaging Systems is likely driven by higher subscription volumes and increased sales of diagnostic imaging systems [8] Segment Performance - The Water segment is projected to deliver solid revenues, benefiting from realized price increases and higher volumes, with an estimated 8.7% year-over-year improvement [10] - The Livestock, Poultry, and Dairy (LPD) division is expected to see a 3.9% year-over-year decrease in revenues for Q2 2025 [11] Earnings ESP and Zacks Rank - IDEXX Laboratories has an Earnings ESP of +0.34%, indicating a higher chance of beating estimates [12] - The company currently holds a Zacks Rank of 3 (Hold) [13]

My recommendation for IDEXX Laboratories, Inc. ( IDXX ) is a buy rating. My thesis is simple. The COVID surge in pet ownership has permanently raised the baseline for demand in veterinary diagnostics, and IDXX is best positioned toI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to associated risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Idexx Laboratories (IDXX) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth seen as indicative of strong future prospects [4] - Idexx's historical EPS growth rate is 12.5%, with projected growth for the current year at 14.1%, surpassing the industry average of 13.6% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without external financing [6] - Idexx's year-over-year cash flow growth is currently 6%, significantly better than the industry average of -0.8% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 14.6%, compared to the industry average of 6.7% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements [8] - Idexx's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] Group 5: Overall Assessment - Idexx holds a Zacks Rank of 2 and a Growth Score of B, indicating its potential as an outperformer and a solid choice for growth investors [10]

Company Performance - atai Life Sciences N.V. has returned 58.7% year-to-date, significantly outperforming the Medical sector, which has returned an average of -3.9% [4] - The Zacks Consensus Estimate for atai Life Sciences N.V.'s full-year earnings has increased by 22.9% over the past 90 days, indicating improved analyst sentiment and a more positive earnings outlook [4] - atai Life Sciences N.V. holds a Zacks Rank of 2 (Buy), suggesting it has characteristics that may lead to outperformance in the market over the next one to three months [3] Industry Comparison - atai Life Sciences N.V. is part of the Medical - Outpatient and Home Healthcare industry, which includes 17 companies and currently ranks 33 in the Zacks Industry Rank [6] - The average return for stocks in the Medical - Outpatient and Home Healthcare industry is 5.2% year-to-date, indicating that atai Life Sciences N.V. is performing better than its industry peers [6] - In contrast, Idexx Laboratories, another Medical stock, belongs to the Medical - Instruments industry, which has seen a decline of -9.8% this year and is ranked 175 [7]

Core Insights - IDEXX Laboratories, Inc. has launched the Catalyst® Cortisol Test, which provides real-time quantitative cortisol measurements to assist in diagnosing Addison's disease and managing Cushing's syndrome in dogs [1][4][5] Group 1: Product Launch and Features - The Catalyst Cortisol Test is the third expansion of the Catalyst platform within a year, enhancing diagnostic capabilities for veterinary practices [1][4] - This test allows for immediate diagnosis or ruling out of Addison's disease and Cushing's syndrome during patient visits, facilitating timely treatment [4][6] - The test will be available in the U.S. and Canada by the end of July 2025, with a global rollout expected to start in Q3 2025 [6] Group 2: Importance of the Test - Addison's disease is challenging to diagnose due to its nonspecific symptoms, making early detection crucial for effective treatment [3] - Cushing's syndrome, prevalent in older dogs, requires long-term management, and untreated cases can severely impact quality of life [3] - The Catalyst Cortisol Test improves long-term care for dogs with Cushing's syndrome by enabling tailored treatment adjustments [4] Group 3: Company Vision and Commitment - IDEXX emphasizes its commitment to advancing veterinary care through innovative solutions that enhance clinical insights and care delivery [5][7] - The test integrates with existing IDEXX systems, providing real-time interpretive guidance to streamline workflows for veterinary teams [8]

Core Viewpoint - IDEXX Laboratories, Inc. (NASDAQ: IDXX) has seen a stock price increase of over 22% since being upgraded to a Buy rating in March 2025, despite a decline in U.S. clinical visits [1]. Company Performance - The company delivered strong quarterly results, indicating resilience in its operations despite external challenges [1]. Investment Strategy - The investment approach focuses on fundamental, bottom-up analysis with an emphasis on long-term quality growth, targeting companies in niche markets with strong growth potential and reasonable valuations [1]. - The portfolio typically consists of 15-20 stocks, emphasizing diversification, risk management, macro-driven sector weights, and disciplined trading [1].

Company Performance - Idexx Laboratories (IDXX) has returned approximately 23.2% since the beginning of the calendar year, significantly outperforming the Medical sector, which has an average return of -6.7% year-to-date [4] - The Zacks Consensus Estimate for IDXX's full-year earnings has increased by 1.9% over the past quarter, indicating improving analyst sentiment and a positive earnings outlook [3] Industry Context - Idexx Laboratories is part of the Medical - Instruments industry, which consists of 85 individual companies and currently ranks 78 in the Zacks Industry Rank. This industry has experienced a loss of about 6.9% so far this year, highlighting IDXX's superior performance within this group [6] - Another stock in the Medical sector, AngioDynamics (ANGO), has also outperformed the sector with a year-to-date return of 2.6% and a consensus EPS estimate increase of 22.5% over the past three months, earning a Zacks Rank of 1 (Strong Buy) [4][5] Sector Ranking - The Medical sector, which includes 1001 individual stocks, ranks 4 in the Zacks Sector Rank, indicating a relatively strong position compared to other sectors [2] - Idexx Laboratories currently holds a Zacks Rank of 2 (Buy), suggesting it is well-positioned for potential growth in the near term [3] Investment Outlook - Investors interested in Medical stocks should continue to monitor Idexx Laboratories and AngioDynamics, as both companies are expected to maintain their solid performance [7]

```markdown PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the three months ended March 31, 2025, show a 3.6% increase in total revenue to $998.4 million compared to the prior year, with net income rising to $242.7 million and diluted EPS increasing to $2.96 from $2.81, while the balance sheet indicates a decrease in cash and cash equivalents and total assets, an increase in total liabilities, and cash flow from operations increasing to $238.0 million with a significant rise in cash used in financing activities due to increased stock repurchases [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $3.21 billion, a slight decrease from $3.29 billion at year-end 2024, primarily due to a reduction in cash and cash equivalents, while total liabilities increased to $1.77 billion from $1.70 billion, driven by higher borrowings under the credit facility, consequently decreasing total stockholders' equity to $1.45 billion from $1.60 billion Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,317,613 | $1,399,897 | | Cash and cash equivalents | $163,970 | $288,266 | | **Total Assets** | **$3,213,689** | **$3,293,443** | | **Total Current Liabilities** | $1,136,213 | $1,067,916 | | Credit facility | $319,500 | $250,000 | | **Total Liabilities** | **$1,765,676** | **$1,698,130** | | **Total Stockholders' Equity** | **$1,448,013** | **$1,595,313** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended March 31, 2025, total revenue increased by 3.6% year-over-year to $998.4 million, gross profit grew by 5.1% to $623.4 million, indicating margin expansion, and net income rose to $242.7 million from $235.6 million in the prior-year period, resulting in a diluted EPS of $2.96, up from $2.81 Consolidated Income Statement Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $998,427 | $964,095 | 3.6% | | Gross Profit | $623,379 | $593,070 | 5.1% | | Income from Operations | $316,534 | $298,958 | 5.9% | | Net Income | $242,677 | $235,579 | 3.0% | | Diluted EPS | $2.96 | $2.81 | 5.3% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2025, net cash from operating activities increased to $238.0 million from $198.6 million in the prior year, net cash used in investing activities decreased significantly to $29.6 million from $106.9 million primarily due to a business acquisition in the 2024 period, and net cash used in financing activities increased substantially to $330.3 million from $144.1 million, driven by a significant increase in common stock repurchases Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $237,962 | $198,585 | | Net cash used by investing activities | $(29,610) | $(106,944) | | Net cash used by financing activities | $(330,321) | $(144,074) | | **Net decrease in cash** | **$(124,296)** | **$(56,499)** | - The increase in cash used for financing was primarily due to a significant rise in common stock repurchases, which totaled **$400.9 million in Q1 2025** compared to **$154.8 million in Q1 2024**[22](index=22&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures supporting the financial statements, including revenue disaggregation by segment and geography, specifics on customer commitment arrangements and contract assets, information on a 2024 business acquisition, debt structure and covenants, a significant increase in stock repurchases, segment performance breakdowns, and hedging activities - Estimated future revenues from multi-year customer commitment arrangements are approximately **$4.7 billion**[44](index=44&type=chunk) - In Q1 2024, the company acquired a software and data platform business for approximately **$81.1 million**, which included **$45.8 million of goodwill**[52](index=52&type=chunk) - The company paid a legal judgment of approximately **$80 million** on April 17, 2025, which was fully accrued as of March 31, 2025[85](index=85&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported total company organic revenue growth of 4.7% for Q1 2025, driven by the Companion Animal Group (CAG) segment, which saw 4.4% organic growth, with gross profit margin improving by 90 basis points to 62.4% due to favorable business mix and price realization, while the company significantly increased its stock repurchases, maintaining strong liquidity with $928.6 million available under the credit facility and compliance with all debt covenants at a low leverage ratio [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Total company organic revenue grew 4.7%, led by CAG Diagnostics recurring revenue and the Water business, with gross profit margin expanding to 62.4% from 61.5% due to favorable mix and pricing, and operating income increasing 5.9% to $316.5 million, while the CAG segment's organic revenue grew 4.4% with strong performance in IDEXX VetLab consumables (10.5% organic growth), and the Water segment grew 7.3% organically, with LPD growing 4.2% Q1 2025 Organic Revenue Growth by Segment | Segment | Organic Revenue Growth (%) | | :--- | :--- | | **Total Company** | **4.7%** | | Companion Animal Group (CAG) | 4.4% | | Water | 7.3% | | Livestock, Poultry and Dairy (LPD) | 4.2% | | Other | 32.2% | - Gross profit margin increased by **90 basis points**, primarily due to favorable business mix, benefiting from IDEXX VetLab consumable growth, and net price realization which offset inflationary cost impacts[142](index=142&type=chunk) - Within the CAG segment, IDEXX VetLab consumables revenue showed strong **10.5% organic growth**, supported by a **9% growth** in the active installed base of instruments[146](index=146&type=chunk)[148](index=148&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position remains solid, with $164.0 million in cash and $928.6 million available under its credit facility as of March 31, 2025, despite working capital decreasing to $181.4 million from $332.0 million at year-end 2024, with strong cash from operations at $238.0 million, and financing activities using $330.3 million, largely for stock repurchases of $400.9 million, while remaining in compliance with its financial covenants, maintaining a gross debt to Adjusted EBITDA ratio of 0.70-to-1, well below the 3.5-to-1 limit - As of March 31, 2025, the company had **$164.0 million in cash and cash equivalents** and **$928.6 million of remaining borrowing availability** under its **$1.25 billion Credit Facility**[169](index=169&type=chunk) - Cash used in financing activities increased significantly year-over-year, primarily due to **$400.9 million in common stock repurchases in Q1 2025** compared to **$154.8 million in Q1 2024**[179](index=179&type=chunk) Financial Covenant Compliance (in thousands, as of March 31, 2025) | Metric | Value | | :--- | :--- | | Trailing 12 Months Adjusted EBITDA | $1,350,001 thousand | | Gross Debt | $943,027 thousand | | **Gross Debt to Adjusted EBITDA Ratio** | **0.70** | | Covenant Limit | 3.50 | [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are foreign currency exchange rates and interest rates, with a strengthening U.S. dollar negatively impacting Q1 2025 revenues by $12.3 million and operating profit by $4.1 million compared to the prior year, and continued currency headwinds expected to decrease revenues by approximately $26 million and diluted EPS by $0.06 for the remainder of 2025, while interest rate risk on $250 million of debt is managed through an interest rate swap, effectively fixing the rate - A strengthening U.S. dollar negatively impacted Q1 2025 results, **decreasing revenue by $12.3 million** and **operating profit by $4.1 million** compared to the prior-year period[192](index=192&type=chunk) - For the remainder of 2025, the company anticipates that foreign exchange rates will **decrease revenues by approximately $26 million** and **reduce diluted EPS by approximately $0.06 per share**[192](index=192&type=chunk) - Interest rate risk is partially mitigated by an interest rate swap that effectively fixes the rate on **$250.0 million of borrowings** under the Credit Facility at **3.9%** plus the applicable credit spread through October 20, 2025[194](index=194&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of March 31, 2025, with no material changes in the company's internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that as of March 31, 2025, the company's disclosure controls and procedures were **effective at the reasonable assurance level**[195](index=195&type=chunk) - **No changes occurred in internal control over financial reporting** during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, these controls[196](index=196&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal actions in the ordinary course of business, and management believes that the resolution of any currently pending matters will not have a material effect on the company's financial condition or results of operations - Management does not expect any currently pending or threatened legal matters to **not have a material effect** on the company's results of operations, financial condition, or cash flows[199](index=199&type=chunk) [Item 1A. Risk Factors](index=45&type=page&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - **No material changes** have occurred from the risk factors previously disclosed in the 2024 Annual Report[200](index=200&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2025, the company repurchased a total of 944,576 shares of its common stock, with 930,800 shares repurchased as part of the publicly announced program, and as of March 31, 2025, 5,202,746 shares remained authorized for repurchase under the program Share Repurchases for Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 177,300 | $428.42 | | Feb 2025 | 338,369 | $460.01 | | Mar 2025 | 428,907 | $428.36 | | **Total** | **944,576** | **N/A** | - As of March 31, 2025, a maximum of **5,202,746 shares** may yet be purchased under the company's share repurchase program[203](index=203&type=chunk) [Item 5. Other Information](index=47&type=section&id=Item%205.%20Other%20Information) During the three months ended March 31, 2025, none of the company's directors or officers adopted, modified, or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement - **No directors or officers adopted, modified, or terminated any Rule 10b5-1 trading plans** during the first quarter of 2025[204](index=204&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act, and the interactive data files (iXBRL) - Exhibits filed include **CEO and CFO certifications** pursuant to Sarbanes-Oxley Sections 302 and 906, and **iXBRL data files**[205](index=205&type=chunk) ```

Q1 2025 Financial Performance - Revenue reached $998 million, with a reported growth of +4% and organic growth of +5%[1] - Operating profit was $317 million, representing 31.7% of revenue[1] - Diluted earnings per share (EPS) grew by +5% to $2.96[1] Segment Performance - CAG (Companion Animal Group) revenue totaled $920 million, with reported growth of +3% and organic growth of +4%[1] - Water revenue was $45 million, showing reported growth of +5% and organic growth of +7%[1] - LPD (Livestock, Poultry and Dairy) revenue reached $29 million, with reported growth of +1% and organic growth of +4%[1] - Within CAG Diagnostics Recurring revenue, IDEXX VetLab® Consumables grew by +9% reported and +10% organically, reaching $345 million[1] - Reference Laboratory Dx and Consulting Services revenue was $344 million, with 0% reported growth and +1% organic growth[1] Premium Instrument Placements - Catalyst® placements totaled 1,469 worldwide, with 530 in the U S and 939 internationally[1] - Premium Hematology placements reached 1,597 worldwide, with 441 in the U S and 1,156 internationally[1] - SediVue® Dx placements were 795 worldwide, with 288 in the U S and 507 internationally[1] 2025 Outlook - Revenue is projected to be between $4,095 million and $4,210 million, with reported growth of 5 0% to 8 0% and organic growth of 6 0% to 9 0%[6] - EPS is expected to be between $11 93 and $12 43, with reported growth of 12% to 17%[6] - Capital expenditures are estimated at approximately $160 million[6] U.S. Companion Animal Practice Growth - As of March 31, 2025, U S companion animal practice revenue showed a year-over-year growth of +2 3% per practice[9] - Total visits experienced a year-over-year decline of -2 6% per practice[9] - Clinical visits decreased by -2 3%, while non-wellness visits showed a decline of -2 6%[9]