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Updated: August 2, 2022

IDEXX beats expectations on Q2 earnings, but cuts full-year outlook further

IDEXX building exterior File photo IDEXX Laboratories Inc. is headquartered in Westbrook.

IDEXX Laboratories Inc. (Nasdaq: IDXX) on Tuesday posted second-quarter results that exceeded market expectations while again cutting its full-year financial outlook, citing macroeconomic risks and other headwinds.

The Westbrook-based provider of veterinary diagnostics, veterinary practice software and water testing reported Q2 earnings of $1.56 per share, beating the $1.54 per share consensus estimate of analysts polled by Zacks Investment Research. That compares to earnings per share of $2.34 a year ago.

Second-quarter revenue was $861 million, representing an increase of 4% as reported over a year ago and 6.5% organically, but falling short of the Zacks consensus estimate by 0.43%.

The company said that strong momentum in cloud-based software placements supported revenue growth in veterinary software, services and diagnostic imaging systems of 27% as reported and 14% organically. Overall revenue gains in the quarter were also supported by revenue growth in the company's water business division of 5% reported and 9% organic. 

Photo of Jay Mazelsky, IDEXX president and CEO
Courtesy / IDEXX Laboratories Inc.
IDEXX President and CEO Jay Mazelsky

"Building on strong prior year gains, IDEXX drove continued solid organic growth in the second quarter," said Jay Mazelsky, the company's president and CEO.

"I am especially pleased with the strong execution of our global teams resulting in record premium instrument placements and cloud-based practice management software adoption. IDEXX innovations have never been more important in helping veterinary clinics manage through capacity challenges and to achieve outstanding care for their patients."

Updated 2022 guidance

Citing various headwinds, the company again reduced its full-year financial guidance for revenues and earnings per share.

The company now expects 2022 revenue to be in the range of $3.305 billion to $3.385 billion, compared to an earlier forecast of $3.39 billion to $3.465 billion.

The updated outlook reflects near-term pressure from factors including constraints on vet clinic capacity, lapping of new patient step-up benefits and additional potential growth impacts related to macroeconomic risk, IDEXX said.

In addition, IDEXX now expects earnings per share for the full year at $7.77 to $8.05, compared to an earlier projection of $8.11 to $8.35 per share. The adjustment includes a decrease of 5 cents due to higher projected interest rates and a decrease of 3 cents related to the strengthening U.S. dollar.

Shares of IDEXX were trading at over $402 apiece late Tuesday morning, after opening at $390.11.

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