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IDEXX Laboratories (IDXX) to Post Q4 Earnings: What's in Store?
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IDEXX Laboratories, Inc. (IDXX - Free Report) is set to release fourth-quarter 2023 results on Feb 5 before the opening bell.
The company posted adjusted earnings per share (EPS) of $2.53 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 6.8%. IDEXX Laboratories beat earnings estimates in all the trailing four quarters, the average surprise being 7.64%.
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 overall organic revenues in the fourth quarter of 2023.
In 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 fourth quarter, backed by continued strong IDEXX execution drivers, including the benefits of higher net price realization.
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 set-of-you platforms.
During the third quarter, ProCyte One installed base expansion continued at a solid pace, reflected in a global installed base of more than 12,000 instruments. Global Rapid Assay revenues expanded 8% organically in the third quarter, supported by strong growth in the U.S., including benefits from higher net price realization. We believe these trends to have continued through the fourth quarter of 2023, thus adding to the top line.
Regarding the other areas of the CAG business, organic revenues in the veterinary software and diagnostic imaging business must have benefited from consistently high levels of organic growth in recurring software and digital imaging revenues and the ongoing momentum in cloud-based software placements.
Per the Zacks Consensus Estimate, CAG business revenues are expected to increase 7.2% year over year to $803 million in the fourth quarter of 2023.
In the fourth quarter, IDEXX’s Water business is likely to have delivered solid gains in the United States driven by the benefits of the net price improvement. The company continues to progress in the integration of the recent Tecta-PDS acquisition, which has expanded water safety testing capabilities. We expect its performance to contribute to growth in the Water business in the to-be-reported quarter.
The Zacks Consensus Estimate for the Water segment's revenues is pegged at $41.3 million in the fourth quarter of 2023 compared to the reported figure of $39.31 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 related to reduced China import testing. For the third quarter, the Zacks Consensus Estimate for the segment’s revenues suggests a 1.3% decline to $32.9 million in the fourth quarter of 2023.
Q4 Estimates
The Zacks Consensus Estimate for IDEXX’s fourth-quarter 2023 total revenues is pegged at $887.9 million, suggesting an increase of 7.2% from the year-ago reported figure.
The Zacks Consensus Estimate for its fourth-quarter 2023 EPS of $2.10 indicates a 2.4% 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 quarter.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +3.68% and a Zacks Rank #2. The company is due to release fourth quarter 2023 results on Feb 28, 2024.
MMSI has an expected long-term earnings growth rate of 11.5%. The company surpassed earnings in each of the trailing four quarters, the average being 14.41%. You can see the complete list of today’s Zacks #1 Rank stocks here.
RxSight (RXST - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank #2. The company is expected to release fourth-quarter 2023 results shortly.
RXST has a long-term expected earnings growth rate of 21%. The company surpassed earnings in each of the trailing four quarters, the average being 18.25%.
Sarepta Therapeutics (SRPT - Free Report) currently has an Earnings ESP of +52.45% and a Zacks Rank #2. The company is expected to release its fourth-quarter 2023 results on Feb 27.
SRPT has an expected earnings growth rate of 132.6% compared to the industry’s 11.1%. In the last reported quarter, the company delivered an earnings surprise of 72.3%.
Image: Bigstock
IDEXX Laboratories (IDXX) to Post Q4 Earnings: What's in Store?
IDEXX Laboratories, Inc. (IDXX - Free Report) is set to release fourth-quarter 2023 results on Feb 5 before the opening bell.
The company posted adjusted earnings per share (EPS) of $2.53 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 6.8%. IDEXX Laboratories beat earnings estimates in all the trailing four quarters, the average surprise being 7.64%.
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 overall organic revenues in the fourth quarter of 2023.
In 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 fourth quarter, backed by continued strong IDEXX execution drivers, including the benefits of higher net price realization.
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 set-of-you platforms.
During the third quarter, ProCyte One installed base expansion continued at a solid pace, reflected in a global installed base of more than 12,000 instruments. Global Rapid Assay revenues expanded 8% organically in the third quarter, supported by strong growth in the U.S., including benefits from higher net price realization. We believe these trends to have continued through the fourth quarter of 2023, thus adding to the top line.
Regarding the other areas of the CAG business, organic revenues in the veterinary software and diagnostic imaging business must have benefited from consistently high levels of organic growth in recurring software and digital imaging revenues and the ongoing momentum in cloud-based software placements.
Per the Zacks Consensus Estimate, CAG business revenues are expected to increase 7.2% year over year to $803 million in the fourth quarter of 2023.
In the fourth quarter, IDEXX’s Water business is likely to have delivered solid gains in the United States driven by the benefits of the net price improvement. The company continues to progress in the integration of the recent Tecta-PDS acquisition, which has expanded water safety testing capabilities. We expect its performance to contribute to growth in the Water business in the to-be-reported quarter.
IDEXX Laboratories, Inc. Price and EPS Surprise
IDEXX Laboratories, Inc. price-eps-surprise | IDEXX Laboratories, Inc. Quote
The Zacks Consensus Estimate for the Water segment's revenues is pegged at $41.3 million in the fourth quarter of 2023 compared to the reported figure of $39.31 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 related to reduced China import testing. For the third quarter, the Zacks Consensus Estimate for the segment’s revenues suggests a 1.3% decline to $32.9 million in the fourth quarter of 2023.
Q4 Estimates
The Zacks Consensus Estimate for IDEXX’s fourth-quarter 2023 total revenues is pegged at $887.9 million, suggesting an increase of 7.2% from the year-ago reported figure.
The Zacks Consensus Estimate for its fourth-quarter 2023 EPS of $2.10 indicates a 2.4% 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 quarter.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +3.68% and a Zacks Rank #2. The company is due to release fourth quarter 2023 results on Feb 28, 2024.
MMSI has an expected long-term earnings growth rate of 11.5%. The company surpassed earnings in each of the trailing four quarters, the average being 14.41%. You can see the complete list of today’s Zacks #1 Rank stocks here.
RxSight (RXST - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank #2. The company is expected to release fourth-quarter 2023 results shortly.
RXST has a long-term expected earnings growth rate of 21%. The company surpassed earnings in each of the trailing four quarters, the average being 18.25%.
Sarepta Therapeutics (SRPT - Free Report) currently has an Earnings ESP of +52.45% and a Zacks Rank #2. The company is expected to release its fourth-quarter 2023 results on Feb 27.
SRPT has an expected earnings growth rate of 132.6% compared to the industry’s 11.1%. In the last reported quarter, the company delivered an earnings surprise of 72.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.