IDEXX Laboratories Faces Market Challenges Despite Strong Fundamentals
With a market capitalization of $33 billion, IDEXX Laboratories, Inc. (IDXX) operates as a leading provider of products for the global companion animal veterinary, livestock and poultry, dairy, and water testing industries. The company, headquartered in Westbrook, Maine, functions through three divisions: Companion Animal Group, Water Quality Products, and Livestock, Poultry and Dairy.
Typically, companies valued at $10 billion or more are categorized as “large-cap stocks,” and IDEXX Laboratories certainly fits this classification. The multinational corporation excels in delivering diagnostic and software products that provide clarity and essential insights to the veterinary community worldwide.
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The company has experienced a significant decline, with its stock dropping nearly 26% from its 52-week high of $548.88. In the last three months, IDXX shares fell almost 6%, faring worse than the broader Nasdaq Composite ($NASX), which dipped 13.2% over the same period.
Looking at the long-term trend, IDXX shares are down 1.7% year-to-date (YTD), outperforming the NASX, which has seen a decline of 10.4%. However, in a broader view, IDXX has decreased 24.8% over the past year, notably lagging behind NASX’s nearly 7% increase during the same timeframe.
Since mid-June last year, the stock has traded below both its 50-day and 200-day moving averages, indicating a bearish trend.
Following its Q4 2024 earnings release on February 3, shares of IDEXX rose 11.1%. The company reported revenue of $954.3 million, surpassing Wall Street expectations, with earnings per share (EPS) of $2.62. A significant contributor to this performance was the Companion Animal Group (CAG), which generated $870.5 million, reflecting a 6% year-over-year growth. Looking ahead, for fiscal year 2025, IDEXX anticipates a sales growth of 4% to 7%, while EPS is expected to increase between 10% and 15%.
When comparing to rivals, CareDx, Inc. (CDNA) has outshined IDEXX with a remarkable 67.5% growth over the past 52 weeks. However, despite its strong performance, CareDx has also witnessed a steeper year-to-date decline of 17.6%, which is more significant than that of IDXX.
Despite IDEXX’s challenging performance over the last year, analysts express a cautiously optimistic outlook for the company. Among 11 analysts covering the stock, there is a consensus rating of “Moderate Buy.” Currently, IDXX is trading below the mean price target of $518.50.
On the date of publication, Sohini Mondal did not hold any positions, directly or indirectly, in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
