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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