Idexx (IDXX) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

Core Insights - Idexx Laboratories (IDXX) is expected to report quarterly earnings of $3.31 per share, a 35.7% increase year-over-year, with revenues projected at $1.07 billion, reflecting a 6.3% year-over-year growth [1] Earnings Projections - The consensus EPS estimate for the quarter has been revised upward by 0.7% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Estimates - Revenue from the Companion Animal Group (CAG) is forecasted to reach $978.21 million, a 6.1% increase from the previous year [5] - Revenue from Other segments is expected to be $4.41 million, up 3.9% year-over-year [5] - Livestock and poultry diagnostics (LPD) revenue is projected at $31.51 million, reflecting a 4% increase [5] - Water revenue is anticipated to be $50.79 million, indicating an 8.7% year-over-year growth [6] - Revenue from the Companion Animal Group in the United States is estimated at $663.10 million, a 5.5% increase [6] - International revenue from the Companion Animal Group is expected to be $312.95 million, up 6.6% year-over-year [7] - LPD International revenue is projected at $25.76 million, reflecting a 2.2% increase [7] - Water International revenue is expected to reach $24.16 million, indicating an 8.5% year-over-year growth [7] Gross Profit Estimates - Gross Profit for the Companion Animal Group (CAG) is expected to be 62.6%, compared to 61.7% in the same quarter last year [8] - Gross Profit for Other segments is estimated at 29.6%, down from 57.8% year-over-year [8] - Gross Profit for LPD is projected at 51.7%, slightly up from 51.3% in the previous year [8] - Gross Profit for Water is expected to be 69.6%, compared to 68.6% in the same quarter last year [9] Stock Performance - Over the past month, Idexx shares have returned +5.6%, outperforming the Zacks S&P 500 composite's +3.4% change [9] - Based on its Zacks Rank 3 (Hold), IDXX is expected to perform in line with the overall market in the upcoming period [10]