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What's in Store for IDEXX Laboratories (IDXX) in Q2 Earnings?
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IDEXX Laboratories, Inc. (IDXX - Free Report) is slated to report second-quarter fiscal 2021 results on Jul 30, before the opening bell.
In the last-reported quarter, the company’s earnings per share of $2.35 surpassed the Zacks Consensus Estimate by 36.6%. Moreover, earnings outpaced the consensus estimate in the trailing four quarters, the average beat being 34.88%.
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 fiscal second 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 high growth in clinical office visit 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, high 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 first quarter on the back of high demand for wellness testing and accelerated growth in international markets is likely to have continued during the fiscal second quarter.
As per the first-quarter update, IDEXX has achieved 956 premium hematology placements (including the initial shipments of ProCyte One) and 577 SediVue placements, reflecting an uptick of 21% year over year. These developments are likely to have driven the fiscal second-quarter top line.
Further, U.S. CAG Diagnostic recurring revenue gains continue to be aided by strong growth in clinical visits (both wellness visit and non-wellness visit).
IDEXX’s Veterinary software, services and diagnostic imaging systems is expected to have registered strong growth in the fiscal second quarter backed by growth in recurring software and digital imaging service and strength in new software system placements. Further, in June 2021, IDEXX acquired ezyVet to expand its cloud-based practice information management system (PIMS) offerings. We believe ezyVet to have contributed significantly to the company’s fiscal second-quarter revenue growth.
The Zacks Consensus Estimate for CAG revenues is pegged at $702 million, suggesting an improvement of 24% 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. During the first-quarter earnings call, the company noted the continued improvement in non-compliance related testing volumes that had been constrained during the pandemic. This is expected to get reflected in fiscal second-quarter results.
The Zacks Consensus Estimate for Water revenues is pegged at $31.8 million, suggesting a rise of 13.1% 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 fiscal second quarter, thus driving the top line.
The Zacks Consensus Estimate for LPD revenues is pegged at $35.6 million, suggesting a rise of 10.6% from the last-reported quarter’s figure.
Estimate Picture
For second-quarter fiscal 2021, the Zacks Consensus Estimate for total revenues of $781.5 million indicates growth of 22.6% from the prior-year reported figure.
The consensus estimate for earnings per share is pegged at $2.01, suggesting growth of 16.9% from the prior-year reported figure.
What Our Model Suggests
Our proven model predicts an earnings beat for IDEXX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: IDEXX has an Earnings ESP of +4.77%. 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 #3.
Other Stocks Worth a Look
Here are a few other medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
Hill-Rom Holdings, Inc. has an Earnings ESP of +0.56% and a Zacks Rank #2, currently. The stock is slated to release third-quarter fiscal 2021 results on Jul 30. You can see the complete list of today’s Zacks #1 Rank stocks here.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.91% and a Zacks Rank of 2, at present. The stock is expected to release second-quarter 2021 results on Aug 3.
Laboratory Corporation of America Holdings (LH - Free Report) has an Earnings ESP of +6.53% and a Zacks Rank of 2, at present. The company is scheduled to release second-quarter 2021 results on Jul 29.
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What's in Store for IDEXX Laboratories (IDXX) in Q2 Earnings?
IDEXX Laboratories, Inc. (IDXX - Free Report) is slated to report second-quarter fiscal 2021 results on Jul 30, before the opening bell.
In the last-reported quarter, the company’s earnings per share of $2.35 surpassed the Zacks Consensus Estimate by 36.6%. Moreover, earnings outpaced the consensus estimate in the trailing four quarters, the average beat being 34.88%.
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 fiscal second 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 high growth in clinical office visit 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, high 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 first quarter on the back of high demand for wellness testing and accelerated growth in international markets is likely to have continued during the fiscal second quarter.
IDEXX Laboratories, Inc. Price and EPS Surprise
IDEXX Laboratories, Inc. price-eps-surprise | IDEXX Laboratories, Inc. Quote
As per the first-quarter update, IDEXX has achieved 956 premium hematology placements (including the initial shipments of ProCyte One) and 577 SediVue placements, reflecting an uptick of 21% year over year. These developments are likely to have driven the fiscal second-quarter top line.
Further, U.S. CAG Diagnostic recurring revenue gains continue to be aided by strong growth in clinical visits (both wellness visit and non-wellness visit).
IDEXX’s Veterinary software, services and diagnostic imaging systems is expected to have registered strong growth in the fiscal second quarter backed by growth in recurring software and digital imaging service and strength in new software system placements. Further, in June 2021, IDEXX acquired ezyVet to expand its cloud-based practice information management system (PIMS) offerings. We believe ezyVet to have contributed significantly to the company’s fiscal second-quarter revenue growth.
The Zacks Consensus Estimate for CAG revenues is pegged at $702 million, suggesting an improvement of 24% 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. During the first-quarter earnings call, the company noted the continued improvement in non-compliance related testing volumes that had been constrained during the pandemic. This is expected to get reflected in fiscal second-quarter results.
The Zacks Consensus Estimate for Water revenues is pegged at $31.8 million, suggesting a rise of 13.1% 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 fiscal second quarter, thus driving the top line.
The Zacks Consensus Estimate for LPD revenues is pegged at $35.6 million, suggesting a rise of 10.6% from the last-reported quarter’s figure.
Estimate Picture
For second-quarter fiscal 2021, the Zacks Consensus Estimate for total revenues of $781.5 million indicates growth of 22.6% from the prior-year reported figure.
The consensus estimate for earnings per share is pegged at $2.01, suggesting growth of 16.9% from the prior-year reported figure.
What Our Model Suggests
Our proven model predicts an earnings beat for IDEXX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: IDEXX has an Earnings ESP of +4.77%. 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 #3.
Other Stocks Worth a Look
Here are a few other medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
Hill-Rom Holdings, Inc. has an Earnings ESP of +0.56% and a Zacks Rank #2, currently. The stock is slated to release third-quarter fiscal 2021 results on Jul 30. You can see the complete list of today’s Zacks #1 Rank stocks here.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.91% and a Zacks Rank of 2, at present. The stock is expected to release second-quarter 2021 results on Aug 3.
Laboratory Corporation of America Holdings (LH - Free Report) has an Earnings ESP of +6.53% and a Zacks Rank of 2, at present. The company is scheduled to release second-quarter 2021 results on Jul 29.