We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Idexx (IDXX) Up 8% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for Idexx Laboratories (IDXX - Free Report) . Shares have added about 8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Idexx due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
IDEXX Beats Q2 Earnings Estimates
IDEXX Laboratories, Inc. posted second-quarter 2019 earnings per share (EPS) of $1.43, reflecting a 16.3% year-over-year rise on a reported basis and 19% growth at comparable constant exchange rate (CER). The figure also surpassed the Zacks Consensus Estimate by 4.4%.
Revenues in Detail
Second-quarter revenues increased 6.8% year over year (up 9% on an organic basis) to $620.1 million. The metric however missed the Zacks Consensus Estimate by 1.3%.
The year-over-year upside was primarily driven by strong global gains from Companion Animal Group (CAG) Diagnostics’ recurring revenues.
Segmental Analysis
IDEXX derives revenues from four operating segments: CAG, Water, Livestock, Poultry and Dairy (LPD) and Other. In the second quarter, CAG revenues climbed 8% (up 10% organically) year over year to $547.3 million. Water segment’s revenues were up 6% from the prior-year quarter (up 10% organically) to $30.3 million. LPD revenues dropped 5% (flat organically) to $31.5 million. Revenues at the Other segment also slipped 12.5% on a reported basis to $4.9 million.
Margins
Gross profit in the second quarter rose 7.6% to $357.9 million in spite of a 5.6% rise in cost of revenues to $262.3 million. Accordingly, gross margin expanded 47 basis points (bps) to 57.7%.
Sales and marketing expenses rose 5.3% to $101.3 million while general and administrative expenses slid 1.8% to $59.9 million. Additionally, research and development expenses increased 9.3% to $32.3 million. Operating margin in the quarter expanded 142 bps to 26.5%.
Financial Position
IDEXX exited the second quarter of 2019 with cash and cash equivalents of $ 110.8 million compared with $116.6 million at the end of the first quarter of 2019. Year-to-date net cash provided by operating activities was $171.5 million compared with $153.7 million in the year-ago period.
2019 Outlook Updated
IDEXX slightly narrowed its revenue guidance for 2019. Full-year revenues are now estimated in the range of $2.38-$2.41 billion, (from the past projection of $2.38-2.42 billion), indicating organic revenue growth of 9.5-10.5% (reported revenue growth of 7.5-9%).
Meanwhile, EPS projection has been raised to the $4.82-4.92 (from the past projection of $4.76-$4.88) band, suggesting annualized growth of 17-20% at CER. The current Zacks Consensus Estimate for EPS stands at $4.82 on revenues of $2.41 billion.
How Have Estimates Been Moving Since Then?
Estimates revision followed a downward path over the past two months.
VGM Scores
At this time, Idexx has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Idexx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Idexx (IDXX) Up 8% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Idexx Laboratories (IDXX - Free Report) . Shares have added about 8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Idexx due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
IDEXX Beats Q2 Earnings Estimates
IDEXX Laboratories, Inc. posted second-quarter 2019 earnings per share (EPS) of $1.43, reflecting a 16.3% year-over-year rise on a reported basis and 19% growth at comparable constant exchange rate (CER). The figure also surpassed the Zacks Consensus Estimate by 4.4%.
Revenues in Detail
Second-quarter revenues increased 6.8% year over year (up 9% on an organic basis) to $620.1 million. The metric however missed the Zacks Consensus Estimate by 1.3%.
The year-over-year upside was primarily driven by strong global gains from Companion Animal Group (CAG) Diagnostics’ recurring revenues.
Segmental Analysis
IDEXX derives revenues from four operating segments: CAG, Water, Livestock, Poultry and Dairy (LPD) and Other. In the second quarter, CAG revenues climbed 8% (up 10% organically) year over year to $547.3 million. Water segment’s revenues were up 6% from the prior-year quarter (up 10% organically) to $30.3 million. LPD revenues dropped 5% (flat organically) to $31.5 million. Revenues at the Other segment also slipped 12.5% on a reported basis to $4.9 million.
Margins
Gross profit in the second quarter rose 7.6% to $357.9 million in spite of a 5.6% rise in cost of revenues to $262.3 million. Accordingly, gross margin expanded 47 basis points (bps) to 57.7%.
Sales and marketing expenses rose 5.3% to $101.3 million while general and administrative expenses slid 1.8% to $59.9 million. Additionally, research and development expenses increased 9.3% to $32.3 million. Operating margin in the quarter expanded 142 bps to 26.5%.
Financial Position
IDEXX exited the second quarter of 2019 with cash and cash equivalents of $ 110.8 million compared with $116.6 million at the end of the first quarter of 2019. Year-to-date net cash provided by operating activities was $171.5 million compared with $153.7 million in the year-ago period.
2019 Outlook Updated
IDEXX slightly narrowed its revenue guidance for 2019. Full-year revenues are now estimated in the range of $2.38-$2.41 billion, (from the past projection of $2.38-2.42 billion), indicating organic revenue growth of 9.5-10.5% (reported revenue growth of 7.5-9%).
Meanwhile, EPS projection has been raised to the $4.82-4.92 (from the past projection of $4.76-$4.88) band, suggesting annualized growth of 17-20% at CER. The current Zacks Consensus Estimate for EPS stands at $4.82 on revenues of $2.41 billion.
How Have Estimates Been Moving Since Then?
Estimates revision followed a downward path over the past two months.
VGM Scores
At this time, Idexx has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Idexx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.