IDEXX Laboratories Inc. (Nasdaq: IDXX) posted better-than-expected second-quarter earnings Thursday morning, buoyed by its veterinary diagnostics business.
The Westbrook-based company reported second-quarter earnings per share of $1.43, beating the $1.37 predicted in a Zacks analyst consensus forecast and representing a 16% increase over a year earlier on a reported basis.
IDEXX said Thursday’s results reflected continued strong revenue gains in its Companion Animal Group Diagnostics division, which supported an improvement in operating margins that exceeded projections.
“IDEXX business momentum remained strong in the second quarter driven by high organic growth in CAG Diagnostics recurring revenues,” said Jay Mazelsky, the company’s interim president and CEO. “The solid performance we continue to deliver is the result of a deep and talented global team, an unrelenting commitment to innovation, a unique multi-modal strategy and our durable recurring business model.
The company’s president and CEO, Jonathan Ayers, was injured in a June cycling accident and is currently on medical leave.
IDEXX reported second-quarter revenues of $620.10 million, up from $580.75 million in the same period last year.
Blaming foreign-currency headwinds, IDEXX also downgraded its 2019 revenue outlook to a range of $2.38 billion to $2.41 billion. At the mid-point of that range, the updated outlook is $10 million below its previous guidance.
It estimates that the stronger U.S. dollar will reduce full-year 2019 reported revenue growth by about 1.5% to 2%.
IDEXX also raised its 2019 earnings per share outlook by 5 cents to a range of $4.82 to $4.92 a share.