IDXX Gears Up for Q3 Earnings: What to Expect From the Stock?

Core Viewpoint - IDEXX Laboratories, Inc. is expected to report its third-quarter 2024 results on October 31, with revenue estimates indicating a 7% year-over-year increase to $979.3 million and EPS expected to rise by 6.3% to $2.69 [1][2]. Group 1: Earnings Performance - In the last reported quarter, IDEXX posted adjusted EPS of $2.44, missing the Zacks Consensus Estimate by 14.98% [1]. - The company has beaten earnings estimates in three of the last four quarters, with an average surprise of 1.51% [1]. Group 2: Revenue Estimates - The Zacks Consensus Estimate for third-quarter 2024 revenues is $979.3 million, reflecting a 7% increase from the previous year [2]. - The Water segment is projected to see an 8% year-over-year revenue improvement, while the Livestock, Poultry, and Dairy segment is expected to have a modest 0.1% increase [10][11]. Group 3: Factors Influencing Performance - The Companion Animal Group (CAG) is anticipated to benefit from improved global net prices and international organic growth, supported by strong execution of strategies [4]. - Diagnostic utilization per clinical visit is expected to have expanded, contributing to higher diagnostic revenue [5]. - IDEXX VetLab consumables are likely to show strong organic growth, driven by performance in the U.S. and international markets [6]. Group 4: Market Dynamics - The U.S. CAG Diagnostics' recurring revenues are expected to be bolstered by new business gains and high customer retention levels [5]. - Global lab revenues are anticipated to surge due to strong U.S. performance and growth in international regions [8]. - The veterinary software and diagnostic imaging revenues are expected to benefit from the recent acquisition of Greenline software and data platform [8].