Group 1 - Idexx Laboratories reported quarterly earnings of $2.96 per share, exceeding the Zacks Consensus Estimate of $2.92 per share, and showing an increase from $2.81 per share a year ago, representing an earnings surprise of 1.37% [1] - The company posted revenues of $998.43 million for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 1.77%, but an increase from $964.1 million year-over-year [2] - Idexx has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times during the same period [2] Group 2 - The stock has gained approximately 4.7% since the beginning of the year, contrasting with the S&P 500's decline of -5.3% [3] - The current consensus EPS estimate for the upcoming quarter is $3.26 on revenues of $1.06 billion, and for the current fiscal year, it is $11.96 on revenues of $4.09 billion [7] - The Medical - Instruments industry, to which Idexx belongs, is currently ranked in the top 23% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Overall revenues increased by 5% organically, with a 4.5% organic growth in CAG Diagnostic recurring revenues, despite a 1.5% headwind from equivalent days [4][5] - EPS was $2.96 per share, reflecting a 5% growth as reported and 7% growth on a comparable basis [5][17] - Gross profit increased by 5% as reported and 6% on a comparable basis, with gross margins at 62.4%, up 80 basis points on a comparable basis [15][17] Business Line Data and Key Metrics Changes - CAG organic revenue growth was supported by 7% organic gains in veterinary software and diagnostic imaging revenues, while CAG instrument revenues decreased by 5% organically [6][7] - Water revenues increased by 7% organically, driven by double-digit revenue expansion in Europe [14] - Global rapid assay revenues declined by 2% organically, constrained by customers shifting pancreatic lipase testing to the Catalyst instrument platform [12] Market Data and Key Metrics Changes - U.S. CAG Diagnostic recurring revenue organic growth was 3% in Q1, reflecting a solid growth premium compared to a 2.6% decline in U.S. clinical visits [8][9] - International CAG Diagnostic recurring revenue organic growth was 8.5%, with strong volume gains building on 2024 momentum [8] - IDEXX VetLab consumable revenues increased by 10% organically, supported by a 9% year-over-year growth in the global premium instrument installed base [10] Company Strategy and Development Direction - The company is focused on innovation, highlighted by the launch of IDEXX CancerDx for canine lymphoma and the rollout of IDEXX InVue DX, a new cellular analyzer [24][26] - IDEXX aims to maintain solid organic revenue growth and comparable operating margin improvement, with updated guidance reflecting positive changes from foreign exchange [18][19] - The company is well-positioned to navigate the changing tariff landscape, with 65% of consolidated revenues from the U.S. and less than 1% from China [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential, despite macroeconomic pressures affecting clinical visits [6][38] - The estimated pet population remained stable, supporting strong tailwinds for the business and confidence in delivering solid organic revenue growth [39] - Management noted that while clinical visit metrics are under pressure, diagnostic frequency and utilization remain strong drivers for the business [62] Other Important Information - The company updated its full-year guidance for reported revenues to $4.095 billion to $4.210 billion, reflecting a $40 million increase related to foreign exchange [19] - Free cash flow was $208 million in Q1, with a trailing twelve-month net income to free cash flow conversion ratio of 95% [17] - Share repurchases during the first quarter totaled $415 million, supporting a 2.4% reduction in diluted shares outstanding [18] Q&A Session Summary Question: Can you discuss the trends in clinical visits and the macro environment? - Management noted a consistent trend in wellness and non-wellness visits, with some optimism that clinical visit moderation has stabilized [46][48] Question: What feedback have you received regarding the IDEXX InVue DX? - Initial feedback has been positive, with customers enthusiastic about the ease of use and accuracy of results [52][56] Question: How is the company positioned regarding tariffs and potential impacts? - The company is relatively well-positioned with a majority of revenues from the U.S. and has operational plans to mitigate tariff impacts [65][68] Question: Can you provide insights on the uptake of CancerDx? - Over a thousand unique practices have ordered the test, indicating strong initial interest and awareness [73][75] Question: What gives you confidence in the guidance for CAG recurring revenue? - Management expects clinical visits to decline similarly to 2024 levels, with ongoing innovations supporting growth [78][80]

Financial Data and Key Metrics Changes - Overall revenues increased by 5% organically, with a 4.5% organic growth in CAG Diagnostic recurring revenues, despite a 1.5% headwind from equivalent days [4][5] - EPS was $2.96 per share, reflecting a 5% growth as reported and 7% growth on a comparable basis [5][18] - Gross profit increased by 5% as reported and 6% on a comparable basis, with gross margins at 62.4%, up 80 basis points on a comparable basis [16][18] Business Line Data and Key Metrics Changes - CAG organic revenue growth was supported by 7% organic gains in veterinary software and diagnostic imaging revenues, while CAG instrument revenues decreased by 5% organically [6][7] - Water revenues increased by 7% organically, driven by double-digit revenue expansion in Europe [15] - Global rapid assay revenues declined by 2% organically, constrained by customers shifting pancreatic lipase testing to the Catalyst instrument platform [13] Market Data and Key Metrics Changes - International CAG Diagnostic recurring revenue organic growth was 8.5%, reflecting strong volume gains and net price realization [9] - U.S. CAG Diagnostic recurring revenue organic growth was 3% in Q1, net of days headwind, compared to a 2.6% decline in U.S. clinical visits [10][9] - The estimated pet population sustained in 2024 at similar levels to the prior year, supporting strong tailwinds for the business [40] Company Strategy and Development Direction - The company is focused on innovation, highlighted by the launch of IDEXX CancerDx for canine lymphoma and IDEXX InVue DX, a new cellular analyzer [26][34] - The strategy includes expanding the oncology menu to address the majority of canine cancer cases within three years [33] - The company aims to maintain a strong commercial model grounded in partnership, flexibility, and execution excellence to drive innovation-led growth [31] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic conditions remain dynamic, but there are strong demand signals and continued willingness by clinics to invest in diagnostics [31][39] - The company is well-positioned to navigate the changing tariff landscape, with 65% of revenues based in the U.S. and minimal exposure to China [38][63] - Management expressed optimism about the stabilization of clinical visit moderation and the potential for growth in diagnostic frequency and utilization [47][61] Other Important Information - The company updated its full-year guidance for reported revenues to $4.095 billion to $4.210 billion, reflecting a $40 million increase related to foreign exchange [21] - The updated full-year EPS outlook is $11.93 to $12.43 per share, driven by foreign exchange and favorable adjustments [23] - Free cash flow was $208 million in Q1, with a trailing twelve-month net income to free cash flow conversion ratio of 95% [18] Q&A Session Summary Question: Can you discuss the trends in clinical visits and macroeconomic conditions? - Management noted a consistent trend in wellness and non-wellness visits, with some optimism about stabilization despite macro headwinds [46][47] Question: What feedback has been received regarding the IDEXX InVue DX? - Initial feedback has been positive, with customers enthusiastic about the ease of use and accuracy of results, leading to a significant ramp-up in placements [50][52] Question: How is the company positioned regarding tariffs and potential impacts? - The company is relatively well-positioned with a majority of revenues from the U.S. and has operational plans in place to mitigate tariff impacts [63][64]

Revenue and Growth - IDEXX reported first quarter revenue of $998 million, reflecting a 4% increase as reported and 5% organic growth, driven by Companion Animal Group (CAG) growth of 3% as reported and 4% organic [5]. - IDEXX updated its 2025 revenue guidance to a range of $4,095 million to $4,210 million, indicating a reported growth of 5% to 8% [14]. - The company anticipates CAG Diagnostics recurring revenue growth of 4% to 7% for 2025, with organic growth projected at 5% to 8% [14]. - IDEXX's veterinary software, services, and diagnostic imaging systems revenues grew by 9% as reported and 7% organic, driven by cloud-based software placements [9]. - The company experienced a 5% increase in Water revenues as reported and 7% organic for the quarter, indicating solid growth across regions [10]. - IDEXX's Companion Animal Group Diagnostics recurring revenue growth was supported by 5% reported and 8.5% organic gains in international regions [7]. - Revenue for the first quarter of 2025 was $998,427 thousand, representing a 3.6% increase from $964,095 thousand in the first quarter of 2024 [44]. - CAG revenue for Q1 2025 was $919,836 thousand, showing a 3.4% increase from $889,285 thousand in Q1 2024 [46]. - The company’s international revenue grew by 3.1% year-over-year, with a notable 6.7% organic growth in international markets [47]. Earnings and Profitability - The company achieved earnings per diluted share (EPS) of $2.96, marking a 5% increase as reported and 7% on a comparable basis, excluding a $0.08 per share benefit from a litigation expense accrual adjustment [6]. - The updated EPS outlook for 2025 is projected to be between $11.93 and $12.43, reflecting a 12% to 17% growth as reported [16]. - Comparable EPS growth for Q1 2025 was 7%, with comparable EPS at $2.91 compared to $2.71 in Q1 2024 [35]. - Net income attributable to stockholders for Q1 2025 was $242,677 thousand, compared to $235,579 thousand in Q1 2024, reflecting a growth of 3.0% [44]. - The company reported a basic earnings per share of $2.98 for Q1 2025, an increase from $2.84 in Q1 2024 [44]. Margins and Expenses - Gross margin for the first quarter was 62.4%, an increase of 90 basis points as reported, supported by strong growth in IDEXX VetLab consumables revenue [12]. - Operating margin was reported at 31.7%, reflecting a 70 basis point increase year-over-year, despite a 4% growth in operating expenses [13]. - Operating expenses for Q1 2025 were reported at $306,845,000, a 4% increase from $294,112,000 in Q1 2024 [30]. - The operating margin for Q1 2025 was 31.7%, up from 31.0% in Q1 2024, reflecting a 70 basis points improvement [30]. - Comparable operating profit growth for Q1 2025 was 4%, with comparable operating profit at $312,022,000 compared to $298,958,000 in Q1 2024 [30]. Cash Flow and Financial Position - Free cash flow for the first quarter of 2025 is projected to be approximately $708 million after deducting capital expenditures of $160 million [40]. - Free cash flow for the first quarter of 2025 was $207,936,000, compared to $168,312,000 in the first quarter of 2024, reflecting a 23.6% increase [54]. - The company reported a net cash provided by operating activities of $237,962,000 for Q1 2025, compared to $198,585,000 in Q1 2024 [53]. - Total current assets decreased to $1,317,613,000 as of March 31, 2025, down from $1,399,897,000 at the end of 2024 [50]. - Total stockholders' equity decreased to $1,448,013,000 as of March 31, 2025, compared to $1,595,313,000 at the end of 2024 [50]. - Cash and cash equivalents decreased to $163,970,000 at the end of Q1 2025, down from $288,266,000 at the end of 2024 [53]. Research and Development - Research and development expenses increased to $59,061 thousand, representing 5.9% of total revenue, compared to 5.5% in the previous year [44]. Shareholder Activities - The company repurchased a total of 945 shares in the first quarter of 2025, at a total cost of $415,339,000 [55]. Other Financial Metrics - Days sales outstanding improved to 45.7 days in Q1 2025 from 47.1 days in Q4 2024, indicating better collection efficiency [51]. - Inventory turns remained stable at 1.3 for Q1 2025, consistent with previous quarters [51]. - Adjusted EBITDA for the twelve months ended March 31, 2025, was calculated based on net cash provided from operating activities of approximately $968 million [41]. - The impact of foreign currency exchange rates decreased gross profit growth by 1.2% and decreased EPS growth by 1.4% in Q1 2025 [26]. - The company reduced its litigation expense accrual from $89 million to $80 million during the first quarter of 2025 [42].

Idexx Laboratories (IDXX) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on May 1, 2025, might help the stock move higher if these key numbers are better than ...

IDEXX Laboratories, Inc. (IDXX) is set to release first-quarter 2025 results on May 1, before the opening bell.In the last reported quarter, the company posted adjusted earnings per share (EPS) of $2.62, which surpassed the Zacks Consensus Estimate by 9.2%. IDEXX Laboratories’ earnings beat estimates in three of the trailing four quarters and missed in one, the average surprise being 0.78%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).IDXX’s Q1 EstimatesThe Zacks Consensus Estima ...

Company Overview - IDEXX Laboratories (IDXX) shares increased by 10% to close at $397.10, following a notable trading volume, contrasting with a 15.4% loss over the past four weeks [1] - The company is set to release its first-quarter financial results for 2025 on May 1, which has generated investor optimism [2] Financial Performance - In the last reported fourth quarter, IDEXX experienced year-over-year growth in both revenue and earnings, driven by the expansion of its global premium instrument installed base and net customer gains across testing modalities [2] - The upcoming quarterly earnings are expected to be $2.93 per share, reflecting a 4.3% increase year-over-year, with revenues projected at $1.02 billion, a 5.8% increase from the previous year [3] Earnings Estimates and Market Sentiment - The consensus EPS estimate for the upcoming quarter has been revised 1.4% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [4] - IDEXX currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook in the market [4]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks likely to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better performance potential [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score assesses a company's future earnings and financial health to find sustainable growth opportunities [4] - The Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points for investments [5] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth, and momentum [6] Integration with Zacks Rank - The Zacks Rank uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still face downward price pressure due to negative earnings outlooks [10] Company Spotlight: IDEXX Laboratories - IDEXX Laboratories, Inc. is a developer and distributor of products for veterinary, livestock, and water testing markets, with a Zacks Rank of 3 (Hold) and a VGM Score of B [11] - The company is positioned as a growth opportunity, with a Growth Style Score of B and a projected year-over-year earnings growth of 12.2% for the current fiscal year [12] - Recent upward revisions in earnings estimates and a solid earnings surprise average of 0.8% further enhance IDEXX's attractiveness to investors [12]

Healthcare diagnostics equipment manufacturer, Idexx Laboratories (IDXX -1.54%), is the global leader in pet care.But here's an interesting tidbit: The company's shares have risen 10,230% since 2000, as Idexx quickly grew to corner a 15% market share of the $45 billion pet diagnostics industry.Despite this incredible run, Idexx's current share price is the same as it was in late 2020, despite revenue growing by 50% and free cash flow (FCF) per share rising 87% over the same period.This divergence between a ...

IDEXX Laboratories, Inc. (IDXX) is well-poised to grow in the upcoming quarters due to the performance of its CAG (Companion Animal Group) Diagnostics business. The consistent growth in international CAG diagnostic recurring revenues is highly promising. Robust demand for its cloud-based products further bodes optimism for the stock. However, unfavorable solvency and adverse currency fluctuations pose risks for IDEXX’s operations.In the past year, this Zacks Rank #3 (Hold) stock has dropped 21% compared wit ...