Idexx Earnings: Soft Clinical Vet Visits Hamper Growth

Narrow-moat Idexx delivered soft first-quarter results that led management to adjust the outlook downward. However, our estimates remain bounded by the revised guidance, albeit on the high end of the range now, and we’re leaving our fair value estimate unchanged. Though the firm kept a tight rein on expenses, quarterly top-line growth of 7% slightly lagged the high-single-digit pace that Idexx usually delivers. Management indicated severe weather in the first quarter likely depressed revenue growth by 50 to 100 basis points. Nonetheless, even after adjusting for weather patterns, sales growth was still on the anemic side.