Core Insights - Idexx Laboratories Inc reported second-quarter adjusted EPS of $3.02, a 15% increase year-over-year, surpassing the consensus estimate of $2.88 [1] - The company achieved sales of $1 billion, reflecting a 6% increase as reported and 7% organically, closely aligning with the consensus of $1.01 billion [1] - Revenue growth was primarily driven by a 6% increase in the Companion Animal Group and a 9% increase in Water revenue [1] Financial Performance - The gross margin improved to 61.7%, up by 100 basis points as reported and 90 basis points on a comparable basis, aided by net price realization and favorable business mix [3] - Operating margin for the quarter was 26.3%, down 510 basis points from the previous year, impacted by a $62 million discrete litigation expense accrual [3] Guidance and Outlook - Idexx Laboratories forecasts 2024 revenue between $3.885 billion and $3.945 billion, slightly lower than prior guidance [4] - The company expects adjusted 2024 EPS in the range of $10.31 to $10.59, reflecting the impact of litigation expenses and expectations for operating margin improvement [4] Market Trends - Analysts noted that slower growth this quarter was influenced by a decline in vet office visits, a trend observed over several quarters [5] - Despite these trends, analysts believe Idexx can meet its updated outlook range, reaffirming the resilience of the global animal health market [5] Stock Performance - Following the earnings report, IDXX stock rose by 4.65%, reaching $476.25 [6]

Financial Data and Key Metrics Changes - Overall revenues increased by 7% organically, with CAG diagnostic recurring revenues growing by 7% and water business by 10% [4][6] - EPS was reported at $2.44, down 9% due to a $0.56 per share impact from a $62 million discrete expense accrual related to ongoing litigation [5][13] - Comparable EPS growth was 15%, supported by solid gross margin gains and lower net interest costs [5][13] Business Line Data and Key Metrics Changes - CAG organic revenue growth was supported by 8% organic gains in veterinary software and diagnostic imaging revenues, with a 12% increase in recurring revenues [6][10] - CAG instrument revenue increased by 5% organically, while diagnostic recurring revenue increased by 7% [7][10] - Global rapid assay revenues expanded by 6% organically, driven by solid gains in the U.S. [11] Market Data and Key Metrics Changes - U.S. CAG diagnostic recurring revenue growth was 5.2%, net of a 0.5% U.S. equivalent day growth headwind [8][9] - International growth was strong, with 10% organic gains in CAG diagnostic recurring revenues [7][10] - The decline in U.S. same-store clinical visit growth levels was noted, with a 2% decline in Q2 [5][9] Company Strategy and Development Direction - IDEXX is focused on innovation in companion animal diagnostics, aiming to drive growth through new product development and high-quality customer engagement [19][20] - The company is addressing transitional growth headwinds while maintaining solid growth ahead of sector levels [21][22] - Continued investment in R&D and commercial expansion is emphasized to support long-term growth [56][57] Management Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macro dynamics affecting clinical visit trends and expressed confidence in long-term growth drivers for pet healthcare [36][38] - The company expects continued pressure on U.S. clinical visit levels in the second half of 2024, impacting organic revenue growth [15][16] - Management remains optimistic about the long-term demand for diagnostics, driven by pet population growth and increased pet lifespans [19][38] Other Important Information - The company updated its full-year guidance for organic revenue growth to 6.2% to 7.8% [15][16] - A $62 million discrete expense accrual related to litigation was disclosed, impacting reported operating margins [13][54] - Free cash flow was reported at $215 million in Q2, with a net income to free cash flow conversion ratio of 99% [13] Q&A Session Summary Question: What is the biggest delta between the outlook given in Q1 and the current outlook? - Management noted a 150 basis points headwind affecting clinical visits and acknowledged macro dynamics impacting the outlook [36][37] Question: Are long-term growth drivers for vet visits still intact? - Management remains optimistic about long-term trends, including the humanization of pets and increased spending on pet healthcare [38] Question: What is the nature of the legal charge and ongoing litigation? - The $62 million discrete expense accrual relates to royalty payments, with management not commenting further on ongoing litigation [54] Question: How does the company control costs amid market challenges? - Management highlighted effective cost management and continued investment in R&D and commercial initiatives to drive future growth [55][56] Question: What is embedded in guidance regarding the inVue contribution? - Expectations for the Q4 launch of inVue are included in the guidance, with recurring revenue expected to build over time [58][59]

IDEXX Laboratories, Inc. (IDXX) posted second-quarter 2024 earnings per share (EPS) of $2.44, down 8.6% year over year. The figure missed the Zacks Consensus Estimate by 14.9%. Comparable constant-currency EPS of $3.02 improved 14.8% year over year. Revenues in Detail Quarterly revenues increased 6.4% year over year (up 7% organically) to $1.00 billion. The reported figure was in line with the Zacks Consensus Estimate. The year-over-year upside was primarily driven by a strong improvement in Companion Anima ...

Core Insights - Idexx Laboratories reported revenue of $1 billion for the quarter ended June 2024, reflecting a year-over-year increase of 6.4% and a slight revenue surprise of +0.11% over the Zacks Consensus Estimate [1] - The company's EPS was $2.44, down from $2.67 in the same quarter last year, resulting in an EPS surprise of -14.98% compared to the consensus estimate of $2.87 [1] Revenue Performance by Segment - **Companion Animal Group - United States**: Revenue was $628.68 million, slightly below the estimated $637.35 million, representing a year-over-year increase of +5.8% [3] - **Companion Animal Group - International**: Revenue reached $293.61 million, exceeding the estimated $282.88 million, with a year-over-year growth of +7.8% [4] - **Livestock and Poultry Diagnostics (LPD) - International**: Revenue was $25.19 million, surpassing the average estimate of $24.42 million, but showing a year-over-year decline of -1.2% [5] - **Water - International**: Revenue was $22.27 million, slightly below the estimated $22.92 million, with a year-over-year increase of +2% [6] - **Companion Animal Group (CAG)**: Total revenue was $922.30 million, marginally below the estimated $923.58 million, reflecting a year-over-year increase of +6.4% [7] - **Other Revenue**: Revenue was $4.25 million, exceeding the average estimate of $4.07 million, with a year-over-year growth of +5.2% [8] - **Livestock and Poultry Diagnostics (LPD)**: Revenue was $30.31 million, slightly above the estimated $29.98 million, with a year-over-year increase of +1.3% [9] - **Water Revenue**: Revenue was $46.73 million, surpassing the estimated $45.93 million, reflecting a year-over-year increase of +8.6% [9] - **IDEXX VetLab Consumables**: Revenue was $325.35 million, slightly above the estimated $324.54 million, with a year-over-year growth of +7.1% [10] - **CAG Diagnostics Capital - Instruments**: Revenue was $35.29 million, exceeding the average estimate of $34.87 million, with a year-over-year increase of +3.6% [11] - **CAG - Reference Laboratory Diagnostic and Consulting Services**: Revenue was $347.37 million, below the estimated $351.67 million, reflecting a year-over-year increase of +5.2% [12] - **CAG - Rapid Assay Products**: Revenue was $103.29 million, exceeding the estimated $100.59 million, with a year-over-year growth of +6.1% [13] Stock Performance - Idexx shares have returned -5.9% over the past month, compared to a -6.7% change in the Zacks S&P 500 composite, indicating potential underperformance in the near term [13]

Idexx Laboratories (IDXX) came out with quarterly earnings of $2.44 per share, missing the Zacks Consensus Estimate of $2.87 per share. This compares to earnings of $2.67 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -14.98%. A quarter ago, it was expected that this Animal diagnostic and health care company would post earnings of $2.68 per share when it actually produced earnings of $2.81, delivering a surprise of 4.85%. Ov ...

WESTBROOK, Maine, July 30, 2024 /PRNewswire/ -- IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today published its 2023 Corporate Responsibility Report "Enhancing the Health and Well-being of Pets, People, and Livestock for 40 Years" highlighting progress against its corporate responsibility goals. The Care We Advance IDEXX brings clarity to the complex world of veterinary medicine through diagnostic insights and software solutions that support longer, fuller lives fo ...

IDEXX Laboratories, Inc. (IDXX) is set to release second-quarter 2024 results on Aug 6, before the opening bell. Q2 Estimates The Zacks Consensus Estimate for earnings is pinned at $2.87 per share, which implies a 7.5% rise from the year-ago reported figure. Estimates for IDEXX's second-quarter earnings have moved south by a marginal 0.3% to $2.87 per share in the past seven days. In the second quarter, IDXX's Companion Animal Group ("CAG") Diagnostics recurring revenues are expected to have maintained the ...

Pet Owners Worldwide Continue to Prioritize Pet Healthcare ~95% of Pet Owners Indicate They Brought >80% of Pet Owners Would Reduce Spend Their Pet to the Veterinarian When Sick in 2023" on Other Categories to Prioritize Care for a Sick Pet" Moreover, because of better care availability, pets tend to live longer. This comes with increasing costs. The same goes for humans, which is why an aging population is a huge tailwind for many human-focused diagnostics companies. As we can see below, new capabilities h ...

IDEXX Laboratories, Inc. (IDXX) has been facing uncertain macroeconomic conditions. Currency headwinds continue to dent profit. The stock carries a Zacks Rank #4 (Sell) currently. During the first quarter of 2024, foreign exchange had a limited impact on the gross margin, operating profit and earnings. IDEXX's updated 2024 revenue forecast includes a $35 million impact, equivalent to about a 1% decrease, due to the recent appreciation of the U.S. dollar. Key Picks Estimates for Medpace's 2024 earnings per s ...

IDEXX Laboratories, Inc. (IDXX) recently launched the Catalyst Pancreatic Lipase Test, a single-slide solution for canine and feline patients suspected of pancreatitis. With the innovative load-and-go workflow of the Catalyst analyzers, the test can run effortlessly alongside chemistry profiles, leading to a faster path to diagnosis and enhanced patient outcomes. The latest development is likely to strengthen IDEXX's Companion Animal Group ("CAG") Diagnostics business. Significance of the New Test Pancreati ...