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IDEXX Laboratories (IDXX) to Post Q3 Earnings: What's in Store?
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IDEXX Laboratories, Inc. (IDXX - Free Report) is set to release third-quarter 2023 results on Nov 1 before the opening bell.
The company posted adjusted earnings per share (EPS) of $2.67 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 9.88%. IDEXX Laboratories beat earnings estimates in all the trailing four quarters, the average surprise being 7.30%.
Let’s look at how things have shaped up before this announcement.
Factors at Play
IDEXX’s Companion Animal Group (“CAG”) Diagnostics recurring revenues are expected to have achieved robust gains in the United States and international regions. A higher number of premium instrument placements, solid contributions from new business gains and sustained growth in veterinary software and diagnostic imaging revenues must have driven the company’s overall organic revenues in the third quarter of 2023.
Over the past few quarters, CAG Diagnostics’ recurring revenue growth has remained above sector growth levels. This is likely to be reflected in the to-be-reported quarter also. Within the United States, we expect high IDEXX CAG growth premiums to be sustained in the third quarter, achieving 1,370-basis point growth in the last reported second quarter compared to same-store U.S. clinical visit growth levels. These results must have been backed by continued strong IDEXX execution drivers, including the benefits of higher net price realization.
Further, volume gains in the United States must have reflected sustained high customer retention levels, solid new business gains and continued increases in diagnostic frequency and utilization at the practice level. Across modalities, organic growth in IDEXX VetLab consumable revenues must have been supported by the company’s expansion of the global premium instrument installed base, reflecting solid increases across the catalyst, premium hematology and SediVue platforms.
In addition, we assume strong customer interest in ProCyte One to have benefited from global growth in instrument placements. Global rapid assay revenues are also likely to have increased organically in the third quarter of 2023, supported by solid volume gains in the United States and the benefits of net price increases.
Regarding the other areas of the CAG business, organic revenues in the veterinary software and diagnostic imaging business must have benefited from the continued high levels of organic growth in recurring software and digital imaging revenues and the ongoing momentum in cloud-based software placements.
Going by our model, CAG business revenues are expected to increase 9.9% year over year to $840.6 million in the third quarter of 2023.
In the third quarter, IDEXX’s Water business is likely to have delivered solid gains in the United States, Europe and Latin America, including the benefits of the net price improvement. The company continues to progress in the integration of the recent Tecta-PDS acquisition, which has expanded IDXX’s capabilities in water safety testing. We expect its performance to contribute to growth in the Water business in the to-be-reported quarter.
Our model projects the Water segment revenues to be $38.3 million in the third quarter of 2023 compared to the reported figure of $40.8 million in the year-ago quarter.
Similar to the past few quarters, the Livestock, Poultry and Dairy line of business is likely to have been affected by lower herd health screening services. For the third quarter, our model’s projected revenues suggest a 10.2% decline to $25.5 million in the third quarter of 2023.
Q3 Estimates
The Zacks Consensus Estimate for IDEXX’s third-quarter 2023 revenues is pegged at $922.8 million, suggesting an increase of 9.6% from the year-ago reported figure.
The Zacks Consensus Estimate for its third-quarter 2023 EPS of $2.37 indicates a 10.2% 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 -1.57%. 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 quarter.
Insulet has a long-term expected earnings growth rate of 35.7%. PODD has an earnings yield of 1.13% against the industry’s -2.58%.
Acadia Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +6.76% and a Zacks Rank #2. The company is scheduled to release third-quarter 2023 results on Nov 2.
ACAD has an expected long-term earnings growth rate of 43.4%. In the trailing four quarters, the company delivered an average earnings surprise of 20.33%.
Dentsply Sirona (XRAY - Free Report) currently has an Earnings ESP of +1.85% and a Zacks Rank #2. The company is scheduled to release its third-quarter 2023 results on Nov 2.
Dentsply Sirona has an expected earnings growth rate of 14.7% for the next year. XRAY’s earnings beat estimates in three of the trailing four quarters, the average surprise being 12.51%.
Image: Bigstock
IDEXX Laboratories (IDXX) to Post Q3 Earnings: What's in Store?
IDEXX Laboratories, Inc. (IDXX - Free Report) is set to release third-quarter 2023 results on Nov 1 before the opening bell.
The company posted adjusted earnings per share (EPS) of $2.67 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 9.88%. IDEXX Laboratories beat earnings estimates in all the trailing four quarters, the average surprise being 7.30%.
Let’s look at how things have shaped up before this announcement.
Factors at Play
IDEXX’s Companion Animal Group (“CAG”) Diagnostics recurring revenues are expected to have achieved robust gains in the United States and international regions. A higher number of premium instrument placements, solid contributions from new business gains and sustained growth in veterinary software and diagnostic imaging revenues must have driven the company’s overall organic revenues in the third quarter of 2023.
Over the past few quarters, CAG Diagnostics’ recurring revenue growth has remained above sector growth levels. This is likely to be reflected in the to-be-reported quarter also. Within the United States, we expect high IDEXX CAG growth premiums to be sustained in the third quarter, achieving 1,370-basis point growth in the last reported second quarter compared to same-store U.S. clinical visit growth levels. These results must have been backed by continued strong IDEXX execution drivers, including the benefits of higher net price realization.
IDEXX Laboratories, Inc. Price and EPS Surprise
IDEXX Laboratories, Inc. price-eps-surprise | IDEXX Laboratories, Inc. Quote
Further, volume gains in the United States must have reflected sustained high customer retention levels, solid new business gains and continued increases in diagnostic frequency and utilization at the practice level. Across modalities, organic growth in IDEXX VetLab consumable revenues must have been supported by the company’s expansion of the global premium instrument installed base, reflecting solid increases across the catalyst, premium hematology and SediVue platforms.
In addition, we assume strong customer interest in ProCyte One to have benefited from global growth in instrument placements. Global rapid assay revenues are also likely to have increased organically in the third quarter of 2023, supported by solid volume gains in the United States and the benefits of net price increases.
Regarding the other areas of the CAG business, organic revenues in the veterinary software and diagnostic imaging business must have benefited from the continued high levels of organic growth in recurring software and digital imaging revenues and the ongoing momentum in cloud-based software placements.
Going by our model, CAG business revenues are expected to increase 9.9% year over year to $840.6 million in the third quarter of 2023.
In the third quarter, IDEXX’s Water business is likely to have delivered solid gains in the United States, Europe and Latin America, including the benefits of the net price improvement. The company continues to progress in the integration of the recent Tecta-PDS acquisition, which has expanded IDXX’s capabilities in water safety testing. We expect its performance to contribute to growth in the Water business in the to-be-reported quarter.
Our model projects the Water segment revenues to be $38.3 million in the third quarter of 2023 compared to the reported figure of $40.8 million in the year-ago quarter.
Similar to the past few quarters, the Livestock, Poultry and Dairy line of business is likely to have been affected by lower herd health screening services. For the third quarter, our model’s projected revenues suggest a 10.2% decline to $25.5 million in the third quarter of 2023.
Q3 Estimates
The Zacks Consensus Estimate for IDEXX’s third-quarter 2023 revenues is pegged at $922.8 million, suggesting an increase of 9.6% from the year-ago reported figure.
The Zacks Consensus Estimate for its third-quarter 2023 EPS of $2.37 indicates a 10.2% 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 -1.57%. 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 quarter.
Insulet (PODD - Free Report) has an Earnings ESP of +6.61% and a Zacks Rank #2. The company will release third-quarter 2023 results on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Insulet has a long-term expected earnings growth rate of 35.7%. PODD has an earnings yield of 1.13% against the industry’s -2.58%.
Acadia Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +6.76% and a Zacks Rank #2. The company is scheduled to release third-quarter 2023 results on Nov 2.
ACAD has an expected long-term earnings growth rate of 43.4%. In the trailing four quarters, the company delivered an average earnings surprise of 20.33%.
Dentsply Sirona (XRAY - Free Report) currently has an Earnings ESP of +1.85% and a Zacks Rank #2. The company is scheduled to release its third-quarter 2023 results on Nov 2.
Dentsply Sirona has an expected earnings growth rate of 14.7% for the next year. XRAY’s earnings beat estimates in three of the trailing four quarters, the average surprise being 12.51%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.