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IDEXX (IDXX) Aided by Global Growth, Solid Instrument Placement
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IDEXX’s (IDXX - Free Report) robust worldwide commercial capabilities, along with a sturdy CAG arm, have turned into key growth drivers for the company. The stock currently carries a Zacks Rank #2 (Buy).
Over the past year, IDEXX has been outperforming its industry with respect to share price movement. The stock has lost 9.5% compared with the 15.9% decline of the industry.
IDEXX exited the third quarter of 2022 on a decent note with earnings and revenues beating estimates. The company registered year-over-year growth in revenues on both reported and organic basis.
The top line was driven by strong CAG Diagnostics recurring revenue growth. The upside was supported by record instrument placements, resulting in a year-over-year expansion of IDEXX's global premium instrument installed base, which is encouraging.
The company continues to demonstrate solid growth globally. CAG premium instrument placements increased 10% in the third quarter, reflecting 14% growth internationally, as clinics showed continued confidence in investing toward support of increasing demand for diagnostics globally.
Global rapid assay revenues increased 7% organically, supported by solid volume gains in the United States and benefits from net price increases. Reference Lab new business momentum and customer retention remain strong globally.
Water revenues increased 12% organically in the third quarter, reflecting solid volume growth across the United States and international regions and benefits from net price gains.
On the flip side, during the third quarter, IDEXX's LPD revenues declined year-over-year on a reported basis. Further, inflationary pressure has been weighing on the bottom line. The reduced EPS guidance for 2022 and narrowed organic revenue growth range reflect the ongoing severe foreign exchange headwind.
Further, escalating operating costs resulting in a contraction in the operating margin are concerns. According to the company, $83.8 million of discrete R&D investment in the quarter and operating expense growth related to investments in commercial capabilities put pressure on the bottom line.
Majority of IDEXX’s consolidated revenues are derived from sale of products in international markets. Thus, the strengthening of the rate of exchange for the U.S. dollar relative to other currencies had a negative impact on the company’s revenues derived in currencies other than the U.S. dollar and on profits from products manufactured in the United States and sold internationally.
Other Key Picks
Some other top-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Boston Scientific Corporation (BSX - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has lost 10.6% compared with the industry’s 30.3% decline in the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.3%. BSX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 1.9%.
Boston Scientific has gained 6.8% against the industry’s 42.6% decline over the past year.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 13.7% against the industry’s 8.7% decline over the past year.
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IDEXX (IDXX) Aided by Global Growth, Solid Instrument Placement
IDEXX’s (IDXX - Free Report) robust worldwide commercial capabilities, along with a sturdy CAG arm, have turned into key growth drivers for the company. The stock currently carries a Zacks Rank #2 (Buy).
Over the past year, IDEXX has been outperforming its industry with respect to share price movement. The stock has lost 9.5% compared with the 15.9% decline of the industry.
IDEXX exited the third quarter of 2022 on a decent note with earnings and revenues beating estimates. The company registered year-over-year growth in revenues on both reported and organic basis.
The top line was driven by strong CAG Diagnostics recurring revenue growth. The upside was supported by record instrument placements, resulting in a year-over-year expansion of IDEXX's global premium instrument installed base, which is encouraging.
The company continues to demonstrate solid growth globally. CAG premium instrument placements increased 10% in the third quarter, reflecting 14% growth internationally, as clinics showed continued confidence in investing toward support of increasing demand for diagnostics globally.
Global rapid assay revenues increased 7% organically, supported by solid volume gains in the United States and benefits from net price increases. Reference Lab new business momentum and customer retention remain strong globally.
IDEXX Laboratories, Inc. Price
IDEXX Laboratories, Inc. price | IDEXX Laboratories, Inc. Quote
Water revenues increased 12% organically in the third quarter, reflecting solid volume growth across the United States and international regions and benefits from net price gains.
On the flip side, during the third quarter, IDEXX's LPD revenues declined year-over-year on a reported basis. Further, inflationary pressure has been weighing on the bottom line. The reduced EPS guidance for 2022 and narrowed organic revenue growth range reflect the ongoing severe foreign exchange headwind.
Further, escalating operating costs resulting in a contraction in the operating margin are concerns. According to the company, $83.8 million of discrete R&D investment in the quarter and operating expense growth related to investments in commercial capabilities put pressure on the bottom line.
Majority of IDEXX’s consolidated revenues are derived from sale of products in international markets. Thus, the strengthening of the rate of exchange for the U.S. dollar relative to other currencies had a negative impact on the company’s revenues derived in currencies other than the U.S. dollar and on profits from products manufactured in the United States and sold internationally.
Other Key Picks
Some other top-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Boston Scientific Corporation (BSX - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has lost 10.6% compared with the industry’s 30.3% decline in the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.3%. BSX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 1.9%.
Boston Scientific has gained 6.8% against the industry’s 42.6% decline over the past year.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 13.7% against the industry’s 8.7% decline over the past year.