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IDEXX President and CEO Jay Mazelsky
October 31, 2022
IDEXX beats Q3 expectations, but again downgrades full-year outlook
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IDEXX Laboratories Inc. is headquartered in Westbrook.
IDEXX Laboratories Inc. (NASDAQ) on Tuesday posted third-quarter earnings and revenue that exceeded market expectations, but further downgraded its full-year outlook as a stronger U.S. dollar eats into earnings.
The Westbrook-based provider of veterinary diagnostics, veterinary practice software and water testing reported Q3 earnings of $2.15 per share, beating the $2.04 per share consensus estimate of analysts polled by Zacks Investment Research. A year ago, IDEXX reported earnings of $2.03 per share.
Over the last four years, IDEXX has surpassed consensus EPS estimates four times, according to Zacks.
Third-quarter revenue was $842 million, surpassing the Zacks consensus estimate by 1.5%. The figure compares to $810.5 million in reported revenue a year ago.
"Thanks to excellent execution by teams across the organization, IDEXX drove continued solid organic growth off elevated prior levels in the third quarter," said Jay Mazelsky, the company's president and CEO. "By advancing our strategic priorities, IDEXX continues to help veterinarians deliver high standards of care in an efficient way as we pursue enduring growth aligned to the long-term global opportunity for companion animal diagnostics."
IDEXX shares were trading 8% higher at $388.57 in the late morning on Tuesday, giving the stock a market value of $32.35 billion.
Shares have fallen 38% so far this year compared to the S&P 500's decline of more than 19% during the same period.
Full-year outlook
Despite the stronger-than-expected results, IDEXX remains cautious on full-year growth and financial performance, citing a combination of headwinds in its latest projection issued Tuesday.
The company narrowed its full-year revenue growth outlook to 3.5% to 4.5% as reported and 6.5% to 7.5% organically.
The company noted that updated foreign exchange projections will reduce reported revenue by $10 million, with a stronger U.S. dollar now projected to reduce full-year reported growth by about 4% to 5% as reported and 7.5% to 8.5% organically.
IDEXX also updated its earnings per share outlook to a range of $7.74 to $7.98 per share, from a previous expected range of $7.77 to $8.05. The change reflects a $0.01 negative impact from higher projected interest rates and a $0.04 negative impact related to the strengthening U.S. dollar.
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