IDEXX beats expectations in Q4 but warns of currency headwinds in 2019

Courtesy / IDEXX Laboratories Inc. IDEXX Laboratories Inc. (Nasdaq: IDXX) on Friday reported higher-than-expected fourth-quarter earnings, driven by strong global demand for animal diagnostics and lower corporate taxes. The company reported that its fourth-quarter revenues rose 8.5% to $549.4 million.

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By Renee Cordes

IDEXX Laboratories Inc. (Nasdaq: IDXX) on Friday reported higher-than-expected fourth-quarter earnings, driven by strong global demand for animal diagnostics and lower corporate taxes.

The Westbrook-based company, which makes diagnostic tests for pets, poultry and livestock as well as quality and safety tests for water and milk, is Maine’s largest publicly traded company.

Earnings per share rose to 98 cents in the fourth quarter, up from 43 cents a share a year earlier and above the $0.90 a share Zacks analyst consensus forecast.

Fourth-quarter revenues rose 8.5%, to $549.4 million, driven by continued strong gains in its companion animal group diagnostics division, which saw revenues grow by 11.6% over the previous year. International sales made up 39% of fourth-quarter revenues.

"Our sustained high growth reinforces the enduring long-term potential we see for our markets around the world as our customers advance their standards of care by leveraging IDEXX’s unique innovations,” Jonathan Ayers, the company’s chairman and CEO, said in a statement.

He added: “Our global opportunity for growth is supported by evolving pet owners' attitudes, particularly with the millennial generation, towards the importance of care for their family members, and by veterinary practices deepening their appreciation for the value of diagnostics in both sick animal and preventive.”

For 2019, the company reaffirmed its full-year revenue forecast range of $2.385 billion to $2.425 billion, while raising its earnings per share outlook by 4 cents from the midpoint of previous guidance to a range of $4.66 to $4.78 a share.

But it also warned of currency headwinds, saying it continues to estimate that a stronger U.S. dollar will crimp full-year 2019 reported revenue growth by about 1.5% and earnings per share growth by about 1%.

On the capital spending front, IDEXX said it will invest $160 million to $175 million on projects in 2019, including $70 million for its Westbrook headquarters expansion and the relocation and expansion of its core laboratory in Germany. Spending on both projects amounted to $42 million in 2018.

IDEXX shares fell 3.48% on Friday to close at $205.38, giving it a market capitalization of $17.1 billion.