IDEXX Laboratories Inc.‘s (NASDAQ:IDXX) inventory is buying and selling greater on Monday after it reported better-than-expected third-quarter monetary outcomes and raised its 2025 forecast.
The animal well being firm reported third-quarter 2025 adjusted earnings of $3.22 per share, up 15% 12 months over 12 months, beating the consensus of $3.13.
The pet healthcare firm reported gross sales of $1.105 billion, beating the consensus of $1.073 billion, up 13% on a reported and 12% on an natural foundation, pushed by Companion Animal Group (CAG) progress of 14% as reported and 12% natural, and Poultry and Dairy (LPD) income progress of 17% as reported and 14% natural.
CAG income reached $1.012 billion, up from $891.9 million, led by CAG Diagnostics’ recurring income progress of 11% as reported and 10% natural, together with 18% reported and 14% natural beneficial properties in Worldwide areas, and eight% reported and natural progress within the U.S., outpacing sector progress ranges.
U.S. progress was aided by greater diagnostic frequency and easing medical go to pressures.
Water achieved income progress of 8.2% on a reported foundation and seven% on an natural foundation, reaching $54.29 million.
LPD income grew 17.1% on a reported foundation and 14.2% on an natural foundation to $33.94 million.
Gross revenue elevated to $683.35 million, 15% as reported and 13% on a comparable foundation. Gross margin of 61.8% elevated 70 foundation factors as reported and 80 foundation factors on a comparable foundation, supported by Reference Labs’ productiveness initiatives and quantity beneficial properties, robust progress of IDEXX VetLab consumables income, and advantages from internet worth realization serving to to offset inflationary impression.
Working margin was 32.1% for the quarter, greater than the prior 12 months interval by 100 foundation factors as reported and by 120 foundation factors on a comparable foundation.
Steering:
IDEXX Laboratories raised fiscal 2025 earnings from $12.40-$12.76 per share to $12.81-$13.01 per share, versus the consensus of $12.62.
The corporate raised 2025 gross sales steering from $4.205 billion-$4.28 billion to $4.27 billion-$4.30 billion, versus the consensus of $4.232 billion.
Up to date steering contains 2025 reported income progress to 9.6%-10.3% (prior 7.7%-9.7%) and natural progress of 8.8%-9.5% in comparison with the prior vary of seven.0%-9.0%.
CAG Diagnostics’ recurring income progress is anticipated to be 8.3%-9.0% in comparison with the prior vary of 6.5%-8.7%.
Analyst Take
William Blair famous that whereas traders acknowledge ongoing weak spot in finish markets, Idexx Laboratories shares stay close to document highs amid a brand new product cycle.
Analyst Ryan Daniels stated third-quarter outcomes could not settle issues over vet go to traits or pricing pressures, however ought to supply reassurance that the corporate has instruments to fulfill expectations regardless of a difficult backdrop.
Analyst Daniels maintains the Outperform score on shares and expects future EPS progress to drive shares greater.
Value Motion: IDXX inventory is up 13.99% at $717.55 on the final test on Monday.
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