Idexx Laboratories Adjusts Guidance As Q3 Revenue Growth Slows, Analyst Notes Fewer Veterinary Visits, Looks Towards Long-Term Growth

Idexx Laboratories Inc IDXX reported third-quarter adjusted EPS of $2.79, up 12% year-over-year, beating the consensus of $2.68.

The company reported sales of $975.54 million, an increase of 7% as reported and 6% organically, missing the consensus of consensus of $979.18 million.

Organic revenue growth is supported by benefits from IDEXX execution drivers, including continued solid new business gains and double-digit year-over-year global premium installed base growth.

The revenue growth was driven by Companion Animal growth of 7%, as reported, and 6% organic, and Water revenue growth of 13% as reported and organic.

“IDEXX teams continued their strong execution in the third quarter as demonstrated by solid net customer gains, continued growth in our premium IDEXX VetLab instrument installed base, and nearly 700 pre-orders of IDEXX inVue Dx Cellular Analyzer, which will begin shipping later in the fourth quarter,” said Jay Mazelsky, president and CEO. “Customers especially value IDEXX technology solutions like inVue Dx that provide meaningful clinical insights while giving time back to busy practice staff.”

Guidance: IDEXX Laboratories expects full-year revenue of $3.865 billion-$3.89 billion versus prior guidance of $3.885 billion-$3.945 billion and consensus of $3.92 billion.

The company forecasts full-year adjusted EPS of $10.37-$10.53 versus prior guidance of $10.31-$10.59 and a consensus of $10.56.

William Blair notes that this quarter's slower growth stemmed from a continued decline in veterinary office visits, a trend that has been ongoing for several quarters, even as year-over-year growth comparisons become easier.

Investors are now focusing on the industry's growth outlook for 2025, particularly wondering if and when some stability in end-market visits might occur.

Despite these ongoing volume declines posing a short-term growth challenge, the analyst remains optimistic about long-term growth drivers, especially the lasting impact of increased pet ownership from the COVID-19 pandemic-era puppy boom.

Price Action: IDXX stock is down 9.44% at $408.51 at publication Thursday.

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