IDEXX Laboratories Set for Q3 Earnings Report Amidst Market Challenges
Analysts Forecast Increased Profits Despite Recent Setbacks
Westbrook, Maine-based IDEXX Laboratories, Inc. (IDXX) specializes in developing, manufacturing, and distributing products for various markets, including companion animal healthcare, livestock, poultry, dairy, and water testing. Currently valued at a market cap of nearly $37.4 billion, IDEXX also markets portable electrolytes and blood gas analyzers for human medical diagnostics. The company is slated to announce its fiscal Q3 earnings results before the market opens on Thursday, Oct. 31.
In anticipation of this announcement, analysts expect IDEXX to report a profit of $2.69 per share. This represents a 6.3% increase from last year’s earnings of $2.53 per share during the same quarter. Notably, IDEXX has outperformed Wall Street’s bottom-line estimates in three of the past four quarters, although it did miss expectations on one occasion.
In its most recent quarter, the company reported earnings of $2.44 per share, which was a 9% decline from the previous year and about 15% below analysts’ consensus estimates. The decline was largely attributed to a 520-basis point contraction in operating margin, driven by a $62 million expense related to a litigation accrual.
Looking ahead to fiscal 2024, analysts project IDXX’s earnings per share (EPS) to reach $10.44, reflecting a 3.8% increase from fiscal 2023’s $10.06. Furthermore, EPS is expected to escalate by 17.8% year-over-year to $12.30 in fiscal 2025.
This year, shares of IDXX have fallen by 18.5%, significantly lagging behind the S&P 500 Index, which has risen by 21.8%, and the Health Care Select Sector SPDR Fund (XLV), up by 9.9% over the same period.
On Aug. 6, despite missing Wall Street’s bottom-line predictions, shares of IDXX rose 3.1% following its Q2 earnings report. The company’s revenue totaled $1 billion, aligning with consensus estimates, and marked a 6% annual increase, spurred by 6% growth in recurring revenues from CAG Diagnostics and a 9% rise in water revenues.
Analysts maintain a moderately optimistic outlook on IDEXX Laboratories’ stock, assigning it a “Moderate Buy” rating overall. Among ten analysts covering the company, five recommend a “Strong Buy,” one suggests a “Moderate Buy,” while four advise holding the stock. This sentiment has softened slightly over the past three months, as previously there were seven analysts endorsing a “Strong Buy.”
The average analyst price target for IDXX stands at $554.55, suggesting a 22.2% potential upside from its current price.
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Neharika Jain
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