Company Reports

Idexx reported second-quarter results that featured organic revenue and earnings growth of 9% and 15%, respectively. Management raised its full-year outlook, and shares rose 4% on Aug. 4.

Idexx Laboratories has steadily increased its scale and reach in the veterinary diagnostic lab business to dig a wide moat. It is well positioned to benefit from two key trends. First, pet ownership has grown, offering a secular tailwind since the late 1980s. Moreover, pet owners have generally demonstrated greater willingness to spend more on their animals, having more than tripled spending on pet products and services since 1994.

Idexx Labs posted first-quarter organic revenue growth of 11% year over year, and gross margin was up 90 basis points thanks so consumables strength. Management raised its sales and earnings per share outlook by $42 million and $0.13 at the midpoint, respectively.

Idexx Laboratories has steadily increased its scale and reach in the veterinary diagnostic lab business to dig a wide moat. It is well-positioned to benefit from two key trends. First, pet ownership has grown, offering a secular tailwind since the late 1980s. Moreover, pet owners have generally demonstrated greater willingness to spend more on their animals, having more than tripled spending on pet products and services since 1994.

Idexx reported fourth-quarter results that included organic revenue growth of 12% and adjusted earnings growth of 17% supported by operating margin improvement of 120 basis points year over year.

Idexx Laboratories has steadily increased its scale and reach in the veterinary diagnostic lab business to dig a wide moat. It is well-positioned to benefit from two key trends. First, pet ownership has grown, offering a secular tailwind since the late 1980s. Moreover, pet owners have demonstrated greater willingness to spend more on their animals, having more than tripled spending on pet products and services since 1994.

Idexx's third-quarter performance included revenue growth of 12% in constant currency, and roughly 200 basis points of operating margin improvement year over year. Shares were up about 15% on the news Nov. 3.

Idexx delivered second-quarter results with 9% organic top-line and adjusted operating profit growth of 14% year over year, prompting management to raise its revenue outlook by 200 basis points at the midpoint.

Idexx Laboratories has steadily increased its scale and reach in the veterinary diagnostic lab business to dig a wide moat. It is well-positioned to benefit from two key trends. First, pet ownership has grown, offering a secular tailwind since the late 1980s. Moreover, pet owners have demonstrated greater willingness to spend more on their animals, having more than tripled spending on pet products and services since 1994.

Idexx Labs posted quarterly top-line growth of 5% (in constant currency), fueled by 5% growth in companion animal recurring revenue. The quarter was characterized by increases of 2% and 4% in volume and pricing, respectively.

Idexx Laboratories has steadily increased its scale and reach in the veterinary diagnostic lab business to dig a wide moat. It is well-positioned to benefit from two key trends. First, pet ownership continues to grow, offering a secular tailwind since the late 1980s. Moreover, pet owners have demonstrated greater willingness to spend more on their animals, having more than tripled spending on pet products and services since 1994.

Idexx Labs reported quarterly top-line and bottom-line growth of 6% and 13%, respectively, with the latter boosted by repurchase activity.

Idexx delivered another quarter of unusually muted companion animal growth (up 7% year over year) and lowered management outlook again, sending shares swooning 9% in premarket trading.

We have upgraded our economic moat rating on Idexx to wide, after taking a fresh look at the firm’s intangible assets that have complemented switching costs in supporting highly attractive economic profits over the last two decades.

Idexx Laboratories has steadily increased its scale and reach in the veterinary diagnostic lab business to dig a wide moat. It is well-positioned to benefit from two key trends. First, pet ownership continues to grow, offering a secular tailwind since the late 1980s. Moreover, pet owners have demonstrated greater willingness to spend more on their animals, having more than tripled spending on pet products and services since 1994.

Idexx posted second-quarter results that were more muted than usual; we’re leaving our fair value estimate unchanged as our slight adjustments to full-year projections weren’t enough to move the needle. Even more unusual, management reduced its outlook for the second consecutive quarter. Nonetheless, we haven’t seen much to suggest that Idexx’s narrow economic moat has eroded. The firm’s switching costs and intangible assets appear intact.

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.

Idexx Laboratories has steadily increased its scale and reach in the veterinary diagnostic lab business to dig a narrow moat. It is well-positioned to benefit from two key trends. First, pet ownership continues to grow, offering a secular tailwind since the late 1980s. Moreover, pet owners have demonstrated greater willingness to spend more on their animals, having more than tripled spending on pet products and services since 1994.

Narrow-moat Idexx Labs posted fourth-quarter and full-year results that were generally consistent with our top and bottom line estimates, and our projections for 2024 remain within the bounds of management’s outlook. Though we haven’t altered our modeling assumptions, we do expect to modestly raise our fair value estimate to reflect the cash flow realized since our last update. Nevertheless, shares remain overvalued from our perspective.

Idexx Labs reported third-quarter results that generally put the firm on track to meet our full-year expectations, and we’re reiterating our $351 fair value estimate. Though the market may have been disappointed with quarterly top-line growth of 9%, our projections for 2023 remain bounded by management’s lower outlook. We saw little in the quarter to change our view of Idexx’s narrow economic moat, which is rooted in switching costs related to its installed base of benchtop analyzers in animal hospitals, as well as intangible assets including its high-touch service for vets. Nonetheless, there are some endogenous factors that have weighed on the larger animal health industry recently, and Idexx has not been immune.