IDEXX Laboratories Inc. (Nasdaq: IDEXX) posted second-quarter results that exceeded Wall Street expectations and again raised its full-year financial outlook.
The Westbrook-based maker of veterinary diagnostics and software posted diluted earnings per share of $4.27, representing an increase of 18% as reported and 15% on a comparable basis from a year ago.
The figure exceeds that $3.95 per share consensus estimate of analysts polled by Zacks Investment Research. It also includes 14 cents a share in tax benefits from share-based compensation and a boost of 6 cents a share from year-over-year currency changes.
In each of the past four quarters, the company has surpassed consensus earnings estimates.
Q2 revenue was $1.22 billion, an increase of 10% as reported and 9% organic, driven by growth in the company’s Companion Animal Group division. The figure is 1.28% above the Zacks consensus estimate.
Mike Erickson, who recently took the helm as IDEXX’s president and CEO, said the results reflect continued innovation across various diagnostic platforms.
“This is the kind of durable, compounding growth we’re building for the long term, helping veterinarians see more and do more for their patients while creating lasting value for our shareholders,” he added.
As of Monday’s close on Wall Street, IDEXX shares have a market value of around $44.8 billion. That’s 17% lower than a year ago.
Updated outlook
In its updated outlook for the full year, IDEXX is projecting earnings per share to be in the range of $14.69 to $14.94. That’s 14 cents higher at the midpoint level than previously.
IDEXX also expects full-year revenue guidance to be in the range of $4.7 billion to $4.75 billion, or reported growth of 9.1% to 10.3%.
That represents an increase of $5 million at midpoint, despite a stronger U.S. dollar resulting in a $15 million net reduction to projected revenues.
IDEXX increased its full-year reported operating margin outlook to 32.3% to 32.5%, bringing the projected full-year operating profit margin expansion to 70 to 90 basis points as reported and on a comparable basis. IDEXX said the updated outlook benefits from strong second-quarter operating performance along with advancing strategic investment priorities.
The company also projects a higher full-year reported operating margin, citing strong second-quarter operating performance and a focus on strategic investments.
