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Strong CAG Sales to Aid IDEXX Laboratories' (IDXX) Q2 Earnings
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IDEXX Laboratories, Inc. (IDXX - Free Report) is set to release second-quarter 2024 results on Aug 6, before the opening bell.
The company posted adjusted earnings per share (EPS) of $2.81 in the last reported quarter. The figure surpassed the Zacks Consensus Estimate by 4.85%. IDEXX Laboratories beat on earnings in each of the trailing four quarters, the average surprise being 7.73%.
Q2 Estimates
The Zacks Consensus Estimate for revenues is pegged at $1 billion, which suggests an increase of 6.2% from the year-ago reported figure.
The Zacks Consensus Estimate for earnings is pinned at $2.87 per share, which implies a 7.5% rise from the year-ago reported figure.
Estimate Revision Trend Ahead of Earnings
Estimates for IDEXX’s second-quarter earnings have moved south by a marginal 0.3% to $2.87 per share in the past seven days.
Let's take a look at how things might have shaped up for the MedTech major before the quarterly announcement.
Factors at Play
In the second quarter, IDXX's Companion Animal Group (“CAG”) Diagnostics recurring revenues are expected to have maintained the trend of robust organic gains, contributing significantly to the company's overall revenue growth. The growth is likely to have been supported by new business gains, sustained high customer retention rates and net price realization in the United States. Additionally, CAG Diagnostics’ recurring revenue growth might have continued to remain above sector growth levels in the to-be-reported quarter.
The company’s international performance is also likely to have been fueled by strong execution, demonstrated through continued growth in premium instrument placements. This must have also led to a significant increase in IDXX’s international premium instrument installed base in the second quarter, contributing to its revenue growth.
Consistent with the past quarters, IDEXX VetLab consumable revenues are likely to have experienced solid organic growth, driven by robust increases in both the United States and international markets. The consumable gains might have been supported by the company’s growing global premium install base, particularly with strong increases across the Catalyst, Premium Hematology and SediVue platforms. This is also expected to have benefited IDXX’s top line.
In the second quarter, IDEXX made its Vello solution available as a new subscription service for ezyVet, Neo and Cornerstone software in Canada. This development is likely to have aided the company’s revenue growth in the to-be-reported quarter.
The Rapid Assay revenues are also projected to have registered organic growth, supported by the benefits of net price increases in the United States. Furthermore, robust gains in the United States and sustained solid organic revenue growth in international regions might have driven Global lab organic revenues.
Increases in CAG Veterinary Software and Diagnostic Imaging Services organic revenues are expected to have been driven by robust recurring revenues and ongoing momentum in cloud-based software placements, thus benefiting the company’s top line in the to-be-reported quarter.
Going by the Zacks Consensus Estimate, CAG business revenues are expected to increase 6.7% year over year in the second quarter.
The Water segment is likely to have achieved strong organic revenues due to continued solid gains in the United States and Europe.
Estimates for the Water segment’s revenues suggest a year-over-year improvement of 6.7%.
In the first quarter of 2024, the Livestock, Poultry and Dairy (“LPD”) line of business achieved growth through solid gains in the United States and Europe. This gain was moderated by the impact of declining herd health screening revenues related to reduced China import testing. We believe this situation might have hurt the company’s top line in the to-be-reported quarter.
The Zacks Consensus Estimate indicates a marginal 0.2% year-over-year improvement in LPD revenues for the second quarter.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates. However, that is not the case here, as you can see below:
Earnings ESP: IDEXX Laboratories has an Earnings ESP of -0.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.
The company is set to release second-quarter 2024 results on Aug 5.
HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 79.17%. The Zacks Consensus Estimate for second-quarter EPS implies a surge of 266.7% from the year-ago quarter’s reported figure.
HCA Healthcare (HCA - Free Report) has an Earnings ESP of +7.10% and a Zacks Rank #2 at present. The company is slated to release second-quarter 2024 results on Jul 23.
HCA’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 5.64%. The Zacks Consensus Estimate for second-quarter EPS implies a surge of 15.9% from the year-ago quarter’s reported figure.
TransMedics Group (TMDX - Free Report) has an Earnings ESP of +23.54% and a Zacks Rank #3 at present. The company is set to release second-quarter 2024 results on Aug 1.
TransMedics has an expected sales growth rate of 15.78% for 2024. TMDX beat on earnings in two of the trailing four quarters and missed in the other two, the average surprise being 9.93%.
Image: Bigstock
Strong CAG Sales to Aid IDEXX Laboratories' (IDXX) Q2 Earnings
IDEXX Laboratories, Inc. (IDXX - Free Report) is set to release second-quarter 2024 results on Aug 6, before the opening bell.
The company posted adjusted earnings per share (EPS) of $2.81 in the last reported quarter. The figure surpassed the Zacks Consensus Estimate by 4.85%. IDEXX Laboratories beat on earnings in each of the trailing four quarters, the average surprise being 7.73%.
Q2 Estimates
The Zacks Consensus Estimate for revenues is pegged at $1 billion, which suggests an increase of 6.2% from the year-ago reported figure.
The Zacks Consensus Estimate for earnings is pinned at $2.87 per share, which implies a 7.5% rise from the year-ago reported figure.
Estimate Revision Trend Ahead of Earnings
Estimates for IDEXX’s second-quarter earnings have moved south by a marginal 0.3% to $2.87 per share in the past seven days.
Let's take a look at how things might have shaped up for the MedTech major before the quarterly announcement.
Factors at Play
In the second quarter, IDXX's Companion Animal Group (“CAG”) Diagnostics recurring revenues are expected to have maintained the trend of robust organic gains, contributing significantly to the company's overall revenue growth. The growth is likely to have been supported by new business gains, sustained high customer retention rates and net price realization in the United States. Additionally, CAG Diagnostics’ recurring revenue growth might have continued to remain above sector growth levels in the to-be-reported quarter.
The company’s international performance is also likely to have been fueled by strong execution, demonstrated through continued growth in premium instrument placements. This must have also led to a significant increase in IDXX’s international premium instrument installed base in the second quarter, contributing to its revenue growth.
Consistent with the past quarters, IDEXX VetLab consumable revenues are likely to have experienced solid organic growth, driven by robust increases in both the United States and international markets. The consumable gains might have been supported by the company’s growing global premium install base, particularly with strong increases across the Catalyst, Premium Hematology and SediVue platforms. This is also expected to have benefited IDXX’s top line.
In the second quarter, IDEXX made its Vello solution available as a new subscription service for ezyVet, Neo and Cornerstone software in Canada. This development is likely to have aided the company’s revenue growth in the to-be-reported quarter.
The Rapid Assay revenues are also projected to have registered organic growth, supported by the benefits of net price increases in the United States. Furthermore, robust gains in the United States and sustained solid organic revenue growth in international regions might have driven Global lab organic revenues.
Increases in CAG Veterinary Software and Diagnostic Imaging Services organic revenues are expected to have been driven by robust recurring revenues and ongoing momentum in cloud-based software placements, thus benefiting the company’s top line in the to-be-reported quarter.
Going by the Zacks Consensus Estimate, CAG business revenues are expected to increase 6.7% year over year in the second quarter.
The Water segment is likely to have achieved strong organic revenues due to continued solid gains in the United States and Europe.
Estimates for the Water segment’s revenues suggest a year-over-year improvement of 6.7%.
IDEXX Laboratories, Inc. Price and EPS Surprise
IDEXX Laboratories, Inc. price-eps-surprise | IDEXX Laboratories, Inc. Quote
In the first quarter of 2024, the Livestock, Poultry and Dairy (“LPD”) line of business achieved growth through solid gains in the United States and Europe. This gain was moderated by the impact of declining herd health screening revenues related to reduced China import testing. We believe this situation might have hurt the company’s top line in the to-be-reported quarter.
The Zacks Consensus Estimate indicates a marginal 0.2% year-over-year improvement in LPD revenues for the second quarter.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates. However, that is not the case here, as you can see below:
Earnings ESP: IDEXX Laboratories has an Earnings ESP of -0.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.
Hims & Hers Health (HIMS - Free Report) has an Earnings ESP of +19.28% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is set to release second-quarter 2024 results on Aug 5.
HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 79.17%. The Zacks Consensus Estimate for second-quarter EPS implies a surge of 266.7% from the year-ago quarter’s reported figure.
HCA Healthcare (HCA - Free Report) has an Earnings ESP of +7.10% and a Zacks Rank #2 at present. The company is slated to release second-quarter 2024 results on Jul 23.
HCA’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 5.64%. The Zacks Consensus Estimate for second-quarter EPS implies a surge of 15.9% from the year-ago quarter’s reported figure.
TransMedics Group (TMDX - Free Report) has an Earnings ESP of +23.54% and a Zacks Rank #3 at present. The company is set to release second-quarter 2024 results on Aug 1.
TransMedics has an expected sales growth rate of 15.78% for 2024. TMDX beat on earnings in two of the trailing four quarters and missed in the other two, the average surprise being 9.93%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.