IDEXX posts better-than-expected Q3 results, raises full-year outlook

File photo IDEXX Laboratories Inc. posted third-quarter results on Monday morning.

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IDEXX Laboratories Inc. (Nasdaq: IDXX) posted third-quarter earnings and revenue that exceeded market expectations and raised its financial outlook for the full year.

The Westbrook-based maker of veterinary diagnostics and software reported diluted earnings per share of $3.40, an increase of 21% as reported and 15% on a comparable basis.

IDEXX said the figure includes 17 cents per share in tax benefits from share-based compensation; 9 cents per share of increased tax expense related to impacts of recent U.S. tax law changes; and a boost of 2 cents per share from currency changes.

Earnings per share exceeded the $3.14 consensus forecast of analysts polled by Zacks Investment Research. Over the last four quarters, IDEXX has surpassed consensus EPS estimates four times.

Third-quarter revenue was $1.1 billion, an increase of 13% as reported and 12% organic, driven by double-digit growth in the company’s Companion Animal Group, its largest business division.

The revenue figure was 3.23% higher than the the Zacks consensus estimate.

File photo

Jay Mazelsky

“IDEXX made exceptional progress on our innovation-driven growth strategy with strong execution and global customer adoption,” Jay Mazelsky, the company’s president and CEO, said in Monday's earnings release.

Building on the launch of several new treatments, “we are delivering powerful new diagnostic capabilities,” he added. “These solutions elevate clinical insights, streamline workflows and create meaningful value for veterinary teams. The enthusiastic response — as reflected in our strong growth profile — highlights the trust our customers place in IDEXX."

As of Friday’s market close, IDEXX shares had a market share of around $50.4 billion. Shares closed the week on Wall Street at $629.51, around 52% higher than a year ago.

Improved outlook

In its updated financial guidance, IDEXX said it now expects full-year revenue at $4.27 billion to $4.3 billion, representing an increase of $43 million or around 1% at midpoint, driven in part by stronger recurring revenue performance in Consumer Animal Group Diagnostics.

IDEXX also projects earnings per share of $12.81 to $13.01, or 33% higher than the prior guidance at midpoint.

The updated EPS projection reflects a 22 cents per share benefit from operational performance, 4 cents from a lower effective tax rate, net impacts related to recent U.S. tax law changes and a combined benefit of around 7 cents from updated estimates for interest expense, average shares outstanding and foreign exchange benefits, the company said.