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IDEXX Laboratories (IDXX) to Post Q2 Earnings: What's in Store?
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IDEXX Laboratories, Inc. (IDXX - Free Report) is set to release second quarter 2023 results on Aug 1 before the opening bell.
The company posted adjusted earnings per share (EPS) of $2.55 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 7.14%. IDEXX Laboratories beat earnings estimates in all the trailing four quarters, the average surprise being 5.15%.
Let’s look at how things have shaped up before this announcement.
Factors at Play
Companion Animal Group (CAG)
Similar to the first quarter, the CAG business is expected to have gained from consistent organic growth in CAG Diagnostics’ recurring revenues. Within the United States, we anticipate solid volume growth, backed by new business gains, sustained customer retention levels and continued increases in diagnostic frequency and utilization at the practice level. Further, in the second quarter, U.S. CAG Diagnostic recurring revenue growth might have outpaced sector growth trends.
In international regions, the segment is likely to have benefited from key execution drivers, including the benefits of higher price realization, solid new business gains and the expansion of the premium instrument base. However, these benefits are likely to have been moderated by the impacts of challenging global macro conditions, which continued to put pressure on same-store volume growth trends in the last reported quarter.
We anticipate IDEXX to have achieved solid organic gains across its testing modalities in the second quarter. IDEXX VetLab consumables revenues are likely to have increased in the United States and international regions. Similar to the last quarter, gains are expected to have been supported by year-over-year growth in its global premium instrument installed base across the company’s Catalyst, Premium Hematology and SediVue platforms.
Further, the worldwide placements of the ProCyte One hematology analyzer are likely to have sustained its growth momentum in the to-be-reported quarter. On the first-quarter earnings call, the company’s management noted that the installed base of this new piece of technology has more than doubled over the last year to 9,400 units.
In the second quarter, global rapid assay organic revenues are likely to have been driven by strong growth in the United States, backed by solid volume gains and the benefits of higher net price realization. Global lab revenues are expected to have witnessed strong gains in the United States. Internationally, growth in key regions is likely to have been moderated by macroeconomic impacts, pressuring same-store sales.
In terms of other areas of the CAG business, veterinary software and diagnostic imaging revenues are likely to have improved in the second quarter, banking on continued high levels of organic growth in recurring software and digital imaging revenues and continued strong momentum in cloud-based software placements.
Our model projects revenues from the CAG segment for the second quarter to be $833.3 million, suggesting an improvement of 6.3% from the year-ago quarter’s reported figure.
Water
In the second quarter, IDEXX’s Water business is likely to have delivered impressive organic revenues in the United States, Europe and Latin America. On the first-quarter earnings call, management noted that progress made in the integration and performance of the recent Tecta-PDS acquisition has expanded IDXX’s capabilities in water safety testing.
Per our model, projected revenues from this segment for the second quarter stand at $42.3 million, indicating a year-over-year improvement of 7.8%.
Livestock, Poultry and Dairy (LPD)
The segment is likely to have witnessed solid organic gains in the United States and Europe in the second quarter. However, in the last reported quarter, growth was offset by comparisons to high prior-year sales levels in herd health screening and reduced revenues from non-core food and safety products in certain regions.
Our model projects revenues from the LPD segment for the second quarter to be $32.3 million, suggesting an improvement of 8.1% from the year-ago quarter’s reported figure. We anticipate the company to have worked through these comparison impacts and have delivered positive growth in LPD in the second quarter.
Q2 Estimates
The Zacks Consensus Estimate for IDEXX’s second quarter 2023 revenues is pegged at $928 million, suggesting an increase of 7.8% from the year-ago reported figure.
The Zacks Consensus Estimate for its second quarter 2023 EPS of $2.43 indicates a 55.8% rise 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, that is not the case here, as you can see below:
Earnings ESP: IDEXX Laboratories 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 some medical stocks worth considering as these have the right combination of elements to post an earnings beat this time:
MCK’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, with the average surprise being 4.48%. The Zacks Consensus Estimate for Mckesson’s fiscal 2024 first-quarter EPS is expected to rise 0.5% from the year-ago reported figure.
Zimmer Biomet (ZBH - Free Report) has an Earnings ESP of +2.34% and a Zacks Rank #2. The company is scheduled to release second-quarter 2023 results on Aug 1.
ZBH’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 7.38%. The Zacks Consensus Estimate for Zimmer Biomet’s second-quarter EPS is expected to be in line with the year-ago reported figure.
AmerisourceBergen currently has an Earnings ESP of +0.86% and a Zacks Rank #2. ABC is scheduled to release third-quarter fiscal 2023 results on Aug 2.
The company’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 3.14%. The Zacks Consensus Estimate for ABC’s fiscal 2023 third-quarter EPS is expected to improve 5.6% from the year-ago reported figure.
Image: Shutterstock
IDEXX Laboratories (IDXX) to Post Q2 Earnings: What's in Store?
IDEXX Laboratories, Inc. (IDXX - Free Report) is set to release second quarter 2023 results on Aug 1 before the opening bell.
The company posted adjusted earnings per share (EPS) of $2.55 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 7.14%. IDEXX Laboratories beat earnings estimates in all the trailing four quarters, the average surprise being 5.15%.
Let’s look at how things have shaped up before this announcement.
Factors at Play
Companion Animal Group (CAG)
Similar to the first quarter, the CAG business is expected to have gained from consistent organic growth in CAG Diagnostics’ recurring revenues. Within the United States, we anticipate solid volume growth, backed by new business gains, sustained customer retention levels and continued increases in diagnostic frequency and utilization at the practice level. Further, in the second quarter, U.S. CAG Diagnostic recurring revenue growth might have outpaced sector growth trends.
IDEXX Laboratories, Inc. Price and EPS Surprise
IDEXX Laboratories, Inc. price-eps-surprise | IDEXX Laboratories, Inc. Quote
In international regions, the segment is likely to have benefited from key execution drivers, including the benefits of higher price realization, solid new business gains and the expansion of the premium instrument base. However, these benefits are likely to have been moderated by the impacts of challenging global macro conditions, which continued to put pressure on same-store volume growth trends in the last reported quarter.
We anticipate IDEXX to have achieved solid organic gains across its testing modalities in the second quarter. IDEXX VetLab consumables revenues are likely to have increased in the United States and international regions. Similar to the last quarter, gains are expected to have been supported by year-over-year growth in its global premium instrument installed base across the company’s Catalyst, Premium Hematology and SediVue platforms.
Further, the worldwide placements of the ProCyte One hematology analyzer are likely to have sustained its growth momentum in the to-be-reported quarter. On the first-quarter earnings call, the company’s management noted that the installed base of this new piece of technology has more than doubled over the last year to 9,400 units.
In the second quarter, global rapid assay organic revenues are likely to have been driven by strong growth in the United States, backed by solid volume gains and the benefits of higher net price realization. Global lab revenues are expected to have witnessed strong gains in the United States. Internationally, growth in key regions is likely to have been moderated by macroeconomic impacts, pressuring same-store sales.
In terms of other areas of the CAG business, veterinary software and diagnostic imaging revenues are likely to have improved in the second quarter, banking on continued high levels of organic growth in recurring software and digital imaging revenues and continued strong momentum in cloud-based software placements.
Our model projects revenues from the CAG segment for the second quarter to be $833.3 million, suggesting an improvement of 6.3% from the year-ago quarter’s reported figure.
Water
In the second quarter, IDEXX’s Water business is likely to have delivered impressive organic revenues in the United States, Europe and Latin America. On the first-quarter earnings call, management noted that progress made in the integration and performance of the recent Tecta-PDS acquisition has expanded IDXX’s capabilities in water safety testing.
Per our model, projected revenues from this segment for the second quarter stand at $42.3 million, indicating a year-over-year improvement of 7.8%.
Livestock, Poultry and Dairy (LPD)
The segment is likely to have witnessed solid organic gains in the United States and Europe in the second quarter. However, in the last reported quarter, growth was offset by comparisons to high prior-year sales levels in herd health screening and reduced revenues from non-core food and safety products in certain regions.
Our model projects revenues from the LPD segment for the second quarter to be $32.3 million, suggesting an improvement of 8.1% from the year-ago quarter’s reported figure. We anticipate the company to have worked through these comparison impacts and have delivered positive growth in LPD in the second quarter.
Q2 Estimates
The Zacks Consensus Estimate for IDEXX’s second quarter 2023 revenues is pegged at $928 million, suggesting an increase of 7.8% from the year-ago reported figure.
The Zacks Consensus Estimate for its second quarter 2023 EPS of $2.43 indicates a 55.8% rise 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, that is not the case here, as you can see below:
Earnings ESP: IDEXX Laboratories 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 some medical stocks worth considering as these have the right combination of elements to post an earnings beat this time:
Mckesson (MCK - Free Report) has an Earnings ESP of +1.93% and a Zacks Rank #2. The company will release first-quarter fiscal 2024 results on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
MCK’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, with the average surprise being 4.48%. The Zacks Consensus Estimate for Mckesson’s fiscal 2024 first-quarter EPS is expected to rise 0.5% from the year-ago reported figure.
Zimmer Biomet (ZBH - Free Report) has an Earnings ESP of +2.34% and a Zacks Rank #2. The company is scheduled to release second-quarter 2023 results on Aug 1.
ZBH’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 7.38%. The Zacks Consensus Estimate for Zimmer Biomet’s second-quarter EPS is expected to be in line with the year-ago reported figure.
AmerisourceBergen currently has an Earnings ESP of +0.86% and a Zacks Rank #2. ABC is scheduled to release third-quarter fiscal 2023 results on Aug 2.
The company’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 3.14%. The Zacks Consensus Estimate for ABC’s fiscal 2023 third-quarter EPS is expected to improve 5.6% from the year-ago reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.