IDEXX Laboratories Inc. (Nasdaq: IDXX) on Thursday posted third-quarter results that beat market expectations amid a strong performance in its pet diagnostics business.
The Westbrook-based provider of veterinary diagnostics, veterinary practice software and water microbiology testing reported Q3 earnings of $1.69 per diluted share, or 27 cents a share above a consensus forecast reported by financial news site Seeking Alpha.
Compared to a year ago, earnings per share were 36% higher on a reported basis and 47% higher on a comparable currency basis.
Third-quarter revenue was $722 million, an increase of 19% on a reported basis and 18% on an organic basis over last year. The figure beat estimates on Seeking Alpha by $49 million.
The company attributed the revenue jump to strong gains in its Companion Animal Group Diagnostics business as well as in its Livestock, Poultry and Dairy business.
Unit breakdown
IDEXX’s Companion Animal Group generated 20% reported and 18% organic revenue growth for the quarter, supported by Companion Animal Group Diagnostics recurring revenue growth of 23% on a reported and 21% on an organic basis, the company said.
Livestock, Poultry and Dairy business revenues grew 18% on a reported and organic basis, driven by strong growth in the Asia Pacific region.
Third-quarter revenue growth was lifted about 1% by a human test for COVID-19, produced by OPTI Medical Systems, an IDEXX subsidiary based in Roswell, Ga.
“We are very pleased to report excellent third-quarter financial results, which reflect impressive global growth in our CAG business and outstanding efforts by the IDEXX team to support the needs of our customers during a dynamic global pandemic environment,” said IDEXX President and CEO Jay Mazelsky in a news release.
‘Encouraged’ by sustained recovery
“We are very encouraged by the sustained strong recovery in pet health care, which reinforces our optimism in the long-term growth potential for our companion animal diagnostics business and positions us well to deliver continued strong financial results.”
The company also pointed to “encouraging” trends in the global pet health care markets during the pandemic while cautioning it is challenging to predict the long-term impact of COVID-19.
On Thursday morning, shares of IDEXX were trading at over $440, after closing Wednesday at $422.89. The company has a market capitalization of roughly $36 billion.