IDEXX Laboratories (IDXX) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Speaker0 Good morning, and welcome to the IDEXX Laboratories First Quarter twenty twenty five Earnings Conference Call. As a reminder, today's conference is being recorded. Participating in the call this morning are Jay Mazelski, President and Chief Executive Officer Andrew Emerson, Chief Financial Officer and John Rebus, Vice President, Investor Relations. IDEXX would like to preface the discussion today with a caution regarding forwa ...

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]

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style Scores? ...

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 ...

More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a solid management team, a sound capital allocation policy, and, most importantly, reasonable valuation. I do not chase quarterly results, nor do I follow the herd mentality. I do not use short-term stock performance as the measure of a company' ...

Group 1 - The individual has extensive experience in financial markets, starting from 2007, with a background in economics and equity research [1] - The role as CFO for a holding company across various industries has provided insights into company management and accounting practices [1] - The focus is on identifying high-quality companies with competitive advantages, strong cash flow, and fair pricing [1] Group 2 - The investment strategy emphasizes long-term growth in companies with high returns on invested capital (ROIC) and expanding margins [1] - The analysis includes a deep dive into the company's business model, market dynamics, competition, financials, and management [1] - Valuation measures such as multiples and discounted cash flow (DCF) are applied alongside qualitative analysis to assess expected growth [1]