IDEXX revenue grows 10 per cent as recurring diagnostics expand
IDEXX reported third-quarter revenue of 1,214 million dollars, up 10 per cent from a year earlier. Recurring companion animal diagnostics grew faster than overall sales, while diluted earnings per share increased 18 per cent. The animal health company raised annual revenue and earnings guidance, although its annual operating margin outlook including acquisition effects was lowered.
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Veterinary sales and earnings rise
IDEXX Laboratories, an animal health diagnostics and software company, reported higher third-quarter revenue and earnings.[1], [2]
Animal health diagnostics and software company IDEXX Laboratories reported third-quarter revenue of 1,214 million dollars, up 10 per cent from a year earlier on both reported and organic bases. Diluted earnings per share reached 4.01 dollars, an increase of 18 per cent as reported and 22 per cent on a comparable basis. Growth in the companion animal business was 10 per cent.[1]
Recurring tests lead the growth
Recurring companion animal diagnostics revenue increased 11 per cent. Within that business, US growth was 10 per cent and international growth 13 per cent as reported, or 14 per cent organically. Laboratory consumables revenue rose 14 per cent as reported and 15 per cent organically. Reference laboratory diagnostics and consulting services grew 10 per cent. Rapid assays increased 1 per cent, while sales of diagnostic capital instruments were unchanged.[1]
Annual sales and margin guidance diverge
Gross margin reached 62.9 per cent and operating margin 33.1 per cent. Operating expenses increased 10 per cent, with management citing commercial investment, new products, acquisitions and transaction costs. IDEXX raised annual revenue guidance to 4,741–4,767 million dollars and diluted earnings per share guidance to 14.96–15.16 dollars. Including acquisition effects, its annual operating margin forecast fell to 32.1–32.3 per cent from 32.3–32.5 per cent. Expected annual capital spending fell from approximately 180 million dollars to 160 million dollars.[1]
