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What's in Store for IDEXX Laboratories (IDXX) in Q1 Earnings?
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IDEXX Laboratories, Inc. (IDXX - Free Report) is slated to report first-quarter fiscal 2021 results on May 4, before the opening bell.
In the last-reported quarter, the company’s earnings per share of $2.01 surpassed the Zacks Consensus Estimate by 40.6%. Moreover, earnings outpaced the consensus estimate in the trailing four quarters, the average beat being 26.95%.
Let's take a look at how things have shaped up prior to this announcement.
Factors at Play
Companion Animal Group
IDEXX is expected to have sustained its strong earnings trajectory in the Companion Animal Group (“CAG”) Diagnostic arm in the first quarter on high CAG diagnostic recurring revenues and continued high customer retention. The segment is also likely to have maintained strength in recurring service revenues across U.S. and international markets backed by continued strong clinical office visit growth trends and increased utilization of diagnostics.
Through the past few quarters, the company has been witnessing solid organic revenues in the CAG segment on strong contributions from its VetLab consumable and Reference Lab. Strength in VetLab consumable revenues is expected to have continued during the to-be-reported quarter, primarily on solid increases in testing utilization across regions, improved customer retention levels and continued expansion of the company’s global premium install base over the past few months. The robust performance of the Rapid Assay products during the fourth quarter on the back of demand for diagnostic testing is likely to have continued during the first quarter as well. However, the company’s first-quarter revenues are likely to have been impacted by the pandemic-related pressure on new imaging system placements observed over the past few months.
Similar to the previously-reported quarter, the company is expected to have continued with the installation of its Sedivue Dx through the first quarter. As per the fourth-quarter update, IDEXX has achieved 978 premium hematology placements and 671 SediVue placements, raising the global SediVue install base to more than 10,700 instruments. These developments are likely to have driven the first-quarter top line.
Further, U.S. CAG Diagnostic recurring revenue gains continue to be aided by strong growth in clinical visits. This trend is likely to have continued during the first quarter as well, thus driving the top line.
The Zacks Consensus Estimate for CAG revenues is pegged at $651 million, suggesting an improvement of 17.9% from the year-ago quarter’s reported figure.
Water
Despite the pandemic-led business challenges, IDEXX’s Water business is likely to have maintained strength as drinking water testing remains an essential service and priority for local governments and utilities. This is expected to get reflected in first-quarter results. However, the segment is likely to have been continued to be impacted by pressure on noncompliance-related testing due to the pandemic. Following a dismal fourth quarter, the company expects the pandemic-led persistence of uneven demand related to noncompliance testing during the yet-to-be-reported quarter.
The Zacks Consensus Estimate for Water revenues is pegged at $33.8 million, suggesting a decline of 1% from the year-ago quarter’s reported figure.
Livestock, Poultry and Dairy
IDEXX’s Livestock, Poultry and Dairy (“LPD”) segment is likely to have continued to benefit from demand for diagnostic testing programs for African swine fever and an improvement in core swine testing volumes in China supported by large producer efforts to rebuild swine herds. Further, the company continues to register strong growth in Asia Pacific. These are expected to have continued during the first quarter as well, thus driving the top line.
The Zacks Consensus Estimate for LPD revenues is pegged at $35.9 million, suggesting a rise of 5.1% from the last-reported quarter’s figure.
Estimate Picture
For first-quarter fiscal 2021, the Zacks Consensus Estimate for total revenues of $734.6 million implies growth of 17.3% from the prior-year reported figure.
The consensus estimate for earnings per share is pegged at $1.72, suggesting growth of 33.3% from the prior-year reported figure.
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 higher chances of beating estimates. However, this is not the case here as you can see:
Earnings ESP: IDEXX has an Earnings ESP of -3.38%. 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 a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
The Cooper Companies, Inc. (COO - Free Report) has an Earnings ESP of +7.06% and a Zacks Rank of 2, at present.
Owens & Minor, Inc. (OMI - Free Report) has an Earnings ESP of +2.41% and a Zacks Rank of 2, at present.
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Image: Bigstock
What's in Store for IDEXX Laboratories (IDXX) in Q1 Earnings?
IDEXX Laboratories, Inc. (IDXX - Free Report) is slated to report first-quarter fiscal 2021 results on May 4, before the opening bell.
In the last-reported quarter, the company’s earnings per share of $2.01 surpassed the Zacks Consensus Estimate by 40.6%. Moreover, earnings outpaced the consensus estimate in the trailing four quarters, the average beat being 26.95%.
Let's take a look at how things have shaped up prior to this announcement.
Factors at Play
Companion Animal Group
IDEXX is expected to have sustained its strong earnings trajectory in the Companion Animal Group (“CAG”) Diagnostic arm in the first quarter on high CAG diagnostic recurring revenues and continued high customer retention. The segment is also likely to have maintained strength in recurring service revenues across U.S. and international markets backed by continued strong clinical office visit growth trends and increased utilization of diagnostics.
Through the past few quarters, the company has been witnessing solid organic revenues in the CAG segment on strong contributions from its VetLab consumable and Reference Lab. Strength in VetLab consumable revenues is expected to have continued during the to-be-reported quarter, primarily on solid increases in testing utilization across regions, improved customer retention levels and continued expansion of the company’s global premium install base over the past few months. The robust performance of the Rapid Assay products during the fourth quarter on the back of demand for diagnostic testing is likely to have continued during the first quarter as well. However, the company’s first-quarter revenues are likely to have been impacted by the pandemic-related pressure on new imaging system placements observed over the past few months.
Similar to the previously-reported quarter, the company is expected to have continued with the installation of its Sedivue Dx through the first quarter. As per the fourth-quarter update, IDEXX has achieved 978 premium hematology placements and 671 SediVue placements, raising the global SediVue install base to more than 10,700 instruments. These developments are likely to have driven the first-quarter top line.
IDEXX Laboratories, Inc. Price and EPS Surprise
IDEXX Laboratories, Inc. price-eps-surprise | IDEXX Laboratories, Inc. Quote
Further, U.S. CAG Diagnostic recurring revenue gains continue to be aided by strong growth in clinical visits. This trend is likely to have continued during the first quarter as well, thus driving the top line.
The Zacks Consensus Estimate for CAG revenues is pegged at $651 million, suggesting an improvement of 17.9% from the year-ago quarter’s reported figure.
Water
Despite the pandemic-led business challenges, IDEXX’s Water business is likely to have maintained strength as drinking water testing remains an essential service and priority for local governments and utilities. This is expected to get reflected in first-quarter results. However, the segment is likely to have been continued to be impacted by pressure on noncompliance-related testing due to the pandemic. Following a dismal fourth quarter, the company expects the pandemic-led persistence of uneven demand related to noncompliance testing during the yet-to-be-reported quarter.
The Zacks Consensus Estimate for Water revenues is pegged at $33.8 million, suggesting a decline of 1% from the year-ago quarter’s reported figure.
Livestock, Poultry and Dairy
IDEXX’s Livestock, Poultry and Dairy (“LPD”) segment is likely to have continued to benefit from demand for diagnostic testing programs for African swine fever and an improvement in core swine testing volumes in China supported by large producer efforts to rebuild swine herds. Further, the company continues to register strong growth in Asia Pacific. These are expected to have continued during the first quarter as well, thus driving the top line.
The Zacks Consensus Estimate for LPD revenues is pegged at $35.9 million, suggesting a rise of 5.1% from the last-reported quarter’s figure.
Estimate Picture
For first-quarter fiscal 2021, the Zacks Consensus Estimate for total revenues of $734.6 million implies growth of 17.3% from the prior-year reported figure.
The consensus estimate for earnings per share is pegged at $1.72, suggesting growth of 33.3% from the prior-year reported figure.
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 higher chances of beating estimates. However, this is not the case here as you can see:
Earnings ESP: IDEXX has an Earnings ESP of -3.38%. 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 a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
HCA Healthcare, Inc. (HCA - Free Report) has an Earnings ESP of +2.14% and a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Cooper Companies, Inc. (COO - Free Report) has an Earnings ESP of +7.06% and a Zacks Rank of 2, at present.
Owens & Minor, Inc. (OMI - Free Report) has an Earnings ESP of +2.41% and a Zacks Rank of 2, at present.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Today, Download Marijuana Moneymakers FREE >>