IDEXX posts lower Q1 earnings, cuts full-year outlook

Illuminated IDEXX building, seen from the outside.

File photo IDEXX Laboratories Inc., based in Westbrook, posted lower first-quarter earnings and cut its full-year outlook.

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By Jessica Hall

IDEXX Laboratories Inc. (Nasdaq: IDXX), the Westbrook maker of veterinary diagnostics, veterinary software and water testing, on Wednesday posted lower first-quarter earnings than a year ago and cut its outlook for 2022 due to the strengthening U.S. dollar, higher interest rates and the war in Ukraine.

Quarterly earnings totaled $193.9 million, or $2.27 a share, down from $204.3 million, or $2.35 a share, for the same period in 2021. The results, while lower, still surpassed Wall Street expectations of $2.25 a share, according to Zacks Investment Research.

First-quarter revenues at the company rose to $836.5 million, up from $777.7 million a year ago.

"IDEXX's first-quarter results build on the significant gains in demand for companion animal diagnostics and software solutions achieved over the last two years," said President and CEO Jay Mazelsky in a news release.

The company's Companion Animal Group generated revenue growth of 10% in the first quarter, while revenues from water testing rose 7%. Revenues from livestock, poultry and dairy business declined 21% from the year-ago quarter, which had benefited from African swine fever testing programs and other swine testing business in China.

For the full year, IDEXX cut its revenue growth outlook amid constraints on vet clinic capacity, the war in Ukraine and the strengthening of the U.S. dollar.

The company now expects revenue to be in the range of $3.39 billion to $3.465 billion, with earnings between $8.11 to $8.35 per share. In February, IDEXX projected full-year earnings per share of $9.27 to $9.59.

Trading in IDEXX closed Tuesday at a share price of $435.96 but opened $50 lower Wednesday, after posting of the new results. By late Wednesday morning, shares were trading at around $404.

IDEXX previously said it had "significantly scaled back operations" in Russia and halted shipments and sales of veterinary diagnostic equipment there due to the country’s invasion of Ukraine.

IDEXX, which employs more than 10,000 people and sells products in 175 countries, will hold its 2022 annual meeting on May 11.