Analyst Says IDEXX Laboratories' Long-Term Growth Outlook Remains Strong

  • IDEXX Laboratories Inc IDXX reported Q4 FY22 sales of $829 million, up 3% Y/Y, beating the consensus of $820.91 million. Adjusted EPS was $2.07, beating the consensus.
  • CAG Diagnostics recurring revenue gains of 4% reported and 8% organic in the quarter were supported by continued benefits from IDEXX execution drivers. 
  • CAG revenue gains also reflect veterinary software, services, and diagnostic imaging systems revenue growth of 15% as reported and 17% organically, supported by software solution placement growth and a continued shift to cloud-based products. 
  • For FY23, the company expects revenue of $3.59-$3.69 billion, compared to the consensus of $3.62 billion.
  • IDEXX forecasts an EPS of $9.27-$9.75 compared to the Wall Street Estimate of $9.50.
  • William Blair notes the veterinary healthcare market as a relatively safe-haven investment area for investors, with IDXX’s strong balance sheet, solid free cash flow profile, impressive ROIC characteristics, and mainly recurring revenue model remaining highly appealing.
  • The analyst writes that solid fourth quarter performance and 2023 commentary strengthen the conviction in the company’s growth trajectory and sees IDXX as a core long-term holding while reiterating the Outperform rating on the stock.
  • Price Action: IDXX shares are up 1.99% at $491.99 on the last check Monday.
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