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IDEXX (IDXX) to Report Q3 Earnings: What's in the Cards?
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IDEXX Laboratories, Inc. (IDXX - Free Report) is slated to report third-quarter 2022 results on Nov 1, before market open.
In the last reported quarter, the company’s earnings per share of $1.56 surpassed the Zacks Consensus Estimate by 1.3%. Moreover, earnings outpaced the consensus estimate in the trailing four quarters, the average beat being 5.84%.
Let’s take a look at how things have shaped up prior to this announcement.
Factors at Play
The Companion Animal Group (CAG) business is expected to have gained from consistent strong organic CAG Diagnostics recurring revenues backed by an increasing number of pet patients. With a gradual decline in pandemic severity, we anticipate growth in U.S. clinical visits to lead to substantial CAG Diagnostic recurring revenue gains in Q3. The CAG arm is also likely to gain from continued organic revenue growth in CAG diagnostic instruments, aided by strong execution trends and benefits from incremental price increases.
Sales contributions from veterinary software and diagnostic imaging, including the benefits from the ezyVet acquisition, are likely to have been advantageous for the business in the to-be-reported quarter. The company’s veterinary software is also expected to report strong growth for the third quarter on gains from recurring software and digital imaging revenues and continued strong momentum in cloud-based software placements.
IDEXX’s CAG premium instrument placements are expected to have recorded strong growth in Q3 on the continued rise in Catalyst and premium hematology placements. In the prior quarter, consumable gains were supported by 15% year-on-year growth in the global premium instrument installed base, reflecting double-digit increases across the company’s catalyst, premium hematology and SediVue platforms. Similar to the last reported quarter, we anticipate IDEXX to have recorded strong sales contributions from Rapid Assay in Q3. Strong customer retention backed by ProCyte One momentum and global expansion efforts in premium hematology placements are likely to have benefited the company’s CAG arm in Q3.
The Zacks Consensus Estimate for CAG revenues is pegged at $755 million, suggesting an improvement of 3% from the year-ago quarter’s reported figure.
IDEXX’s Water business is likely to have delivered impressive revenue performance on strong price gains. The business is expected to have benefited from a continued increase in water testing demand across the world as the effects of the pandemic abate and economies gradually recover from the pandemic.
The Zacks Consensus Estimate for Water revenues is pegged at $39.5 million, suggesting a rise of 3.5% from the year-ago quarter’s reported figure.
Within the Livestock, Poultry and Dairy (LPD) arm, we expect revenue growth in Q3 to have been impacted by lower African swine fever and core swine testing in China compared to the year-ago period. Apart from this, we expect a continued drop in human COVID testing revenues, similar to the second quarter, to have affected LPD sales performance in Q3.
The Zacks Consensus Estimate for LPD revenues is pegged at $28 million, suggesting a fall of 3.9% from the last reported quarter’s figure.
Q3 Estimates
The Zacks Consensus Estimate for the company’s third-quarter 2022 revenues is pegged at $830.4 million, suggesting a rise of 2.5% from the year-ago reported figure.
The Zacks Consensus Estimate for third-quarter 2022 net earnings of $2.04 per share indicates a 0.5% improvement from the year-ago 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 a higher chance of beating estimates. However, this is not the case here as you can see:
Earnings ESP: The company has an Earnings ESP of 0.00%. 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.
Stocks Worth a Look
Here are a few stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana (HUM - Free Report) currently has an Earnings ESP of +0.76% and a Zacks Rank of #1. Humana is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5.02% compares favorably with the industry’s 5.00%.
Image: Bigstock
IDEXX (IDXX) to Report Q3 Earnings: What's in the Cards?
IDEXX Laboratories, Inc. (IDXX - Free Report) is slated to report third-quarter 2022 results on Nov 1, before market open.
In the last reported quarter, the company’s earnings per share of $1.56 surpassed the Zacks Consensus Estimate by 1.3%. Moreover, earnings outpaced the consensus estimate in the trailing four quarters, the average beat being 5.84%.
Let’s take a look at how things have shaped up prior to this announcement.
Factors at Play
The Companion Animal Group (CAG) business is expected to have gained from consistent strong organic CAG Diagnostics recurring revenues backed by an increasing number of pet patients. With a gradual decline in pandemic severity, we anticipate growth in U.S. clinical visits to lead to substantial CAG Diagnostic recurring revenue gains in Q3. The CAG arm is also likely to gain from continued organic revenue growth in CAG diagnostic instruments, aided by strong execution trends and benefits from incremental price increases.
Sales contributions from veterinary software and diagnostic imaging, including the benefits from the ezyVet acquisition, are likely to have been advantageous for the business in the to-be-reported quarter. The company’s veterinary software is also expected to report strong growth for the third quarter on gains from recurring software and digital imaging revenues and continued strong momentum in cloud-based software placements.
IDEXX Laboratories, Inc. Price and EPS Surprise
IDEXX Laboratories, Inc. price-eps-surprise | IDEXX Laboratories, Inc. Quote
IDEXX’s CAG premium instrument placements are expected to have recorded strong growth in Q3 on the continued rise in Catalyst and premium hematology placements. In the prior quarter, consumable gains were supported by 15% year-on-year growth in the global premium instrument installed base, reflecting double-digit increases across the company’s catalyst, premium hematology and SediVue platforms. Similar to the last reported quarter, we anticipate IDEXX to have recorded strong sales contributions from Rapid Assay in Q3. Strong customer retention backed by ProCyte One momentum and global expansion efforts in premium hematology placements are likely to have benefited the company’s CAG arm in Q3.
The Zacks Consensus Estimate for CAG revenues is pegged at $755 million, suggesting an improvement of 3% from the year-ago quarter’s reported figure.
IDEXX’s Water business is likely to have delivered impressive revenue performance on strong price gains. The business is expected to have benefited from a continued increase in water testing demand across the world as the effects of the pandemic abate and economies gradually recover from the pandemic.
The Zacks Consensus Estimate for Water revenues is pegged at $39.5 million, suggesting a rise of 3.5% from the year-ago quarter’s reported figure.
Within the Livestock, Poultry and Dairy (LPD) arm, we expect revenue growth in Q3 to have been impacted by lower African swine fever and core swine testing in China compared to the year-ago period. Apart from this, we expect a continued drop in human COVID testing revenues, similar to the second quarter, to have affected LPD sales performance in Q3.
The Zacks Consensus Estimate for LPD revenues is pegged at $28 million, suggesting a fall of 3.9% from the last reported quarter’s figure.
Q3 Estimates
The Zacks Consensus Estimate for the company’s third-quarter 2022 revenues is pegged at $830.4 million, suggesting a rise of 2.5% from the year-ago reported figure.
The Zacks Consensus Estimate for third-quarter 2022 net earnings of $2.04 per share indicates a 0.5% improvement from the year-ago 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 a higher chance of beating estimates. However, this is not the case here as you can see:
Earnings ESP: The company has an Earnings ESP of 0.00%. 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.
Stocks Worth a Look
Here are a few stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Charles River Laboratories International (CRL - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of #3. The company will release third-quarter 2022 results on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana (HUM - Free Report) currently has an Earnings ESP of +0.76% and a Zacks Rank of #1. Humana is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5.02% compares favorably with the industry’s 5.00%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.