IDEXX reports Q3 earnings growth, but cuts revenue guidance

File photo IDEXX Laboratories, whose Westbrook headquarters are shown here, reported third-quarter results on Thursday morning.

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By William Hall

IDEXX Laboratories Inc. (Nasdaq: IDXX) on Thursday posted revenues of $976 million for the third quarter of 2024, a 7% increase over the same period last year as reported and a 6% jump on an organic basis.

The Westbrook-based maker of veterinary diagnostics and software reported diluted earnings per share of $2.80, an increase of 11% as reported and 12% on a comparable basis.

The company also tapered its 2024 revenue guidance to a range of $3.865 billion to $3.89 billion, a reduction of $38 million. In a news release, IDEXX said the change was a reflection of "near-term negative impacts on growth related to macro and sector conditions constraining pet owner visits and demand at U.S. veterinary clinics."

The earnings increase exceeded the consensus estimate of analysts polled by Zacks Investment Research, but didn't meet their forecast for revenue gain.

The projected revenue increase represents growth of 5.5% to 6.2% as reported and 5.3% to 6% on an organic basis, IDEXX said, much of it driven by expansion in the company's Companion Animal Group Diagnostics business.

IDEXX also narrowed its EPS outlook to a range between $10.37 and $10.53.

“IDEXX teams continued their strong execution in the third quarter as demonstrated by solid net customer gains, continued growth in our premium IDEXX VetLab instrument installed base, and nearly 700 pre-orders of IDEXX inVue Dx Cellular Analyzer, which will begin shipping later in the fourth quarter," said IDEXX President and CEO Jay Mazelsky.

Despite that optimistic note, IDEXX share prices fell early Thursday. By mid-morning, the stock was at around $417 after opening at $430.

IDEXX has a market capitalization of $37.1 billion. The company employs roughly 11,000 people worldwide, with customers in more than 175 countries.