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IDXX Gears Up for Q4 Earnings: What to Expect From the Stock?

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IDEXX Laboratories, Inc. (IDXX - Free Report) is set to release fourth-quarter 2024 results on Feb. 3, before the opening bell.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

In the last reported quarter, the company posted adjusted earnings per share (EPS) of $2.80, which surpassed the Zacks Consensus Estimate by 4.1%. IDEXX Laboratories’ earnings beat estimates in three of the trailing four quarters and missed in one, the average surprise being 0.85%.

IDXX’s Q4 Estimates

The Zacks Consensus Estimate for revenues is pegged at $936.8 million, indicating an increase of 3.9% from the year-ago figure.

The Zacks Consensus Estimate for EPS is pegged at $2.40, indicating an increase of 3.4% from the year-ago figure.

Estimate Revision Trend Ahead of IDXX’s Earnings

Estimates for fourth-quarter earnings have remained unchanged at $2.40 in the past 30 days.

Let’s explore how things might have progressed for the pet healthcare innovator ahead of the announcement.

Factors Shaping IDXX’s Q4 Performance

Companion Animal Group (“CAG”)

In the fourth quarter of 2024, CAG Diagnostics’ recurring revenues are likely to have been supported by improvements in average global net prices and international organic gains. IDEXX Laboratories’ strong execution of strategies might have been a key factor in international growth, reflected in its strong new business gains and more premium instrument placements, boosting the global premium instrument installed base expansion.

The U.S. CAG Diagnostic’s recurring revenues are likely to have benefited from new business gains, sustained high customer retention levels and net price realization. Diagnostic utilization per clinical visit must have continued to expand at the clinic level, resulting in higher diagnostic revenue dollars per clinical visit, including diagnostics. We expect the company to have effectively navigated the headwinds from broader cumulative macroeconomic factors affecting consumers and ultimately achieved solid organic CAG Diagnostic revenue growth in the to-be-reported quarter.

IDEXX VetLab consumables are expected to have delivered strong organic growth, fueled by robust performance in the United States and international regions. 

IDEXX Laboratories had earlier planned to launch the inVue Dx Cellular Analyzer in the fourth quarter. Its expanding test menu for the Catalyst platform, including the new Pancreatic Lipase Test, is expected to have strongly favored the segment’s revenues. 

Within the point-of-care business, IDEXX Catalyst SmartQC was recently launched in North America. Further, the initial customer response toward Velo, a modern pet owner engagement application, was positive. We expect these developments to have strongly favored the segment’s revenues. 

 

IDEXX Laboratories, Inc. Price and EPS Surprise

IDEXX Laboratories, Inc. Price and EPS Surprise

IDEXX Laboratories, Inc. price-eps-surprise | IDEXX Laboratories, Inc. Quote

Additionally, in the third quarter, the company experienced continued strong growth from its Premium Hematology and SediVue platforms. We expect the trend to have continued in the fourth quarter of 2024, further boosting IDXX’s revenues. 

Revenues in global rapid assays are also likely to have benefited from higher net price realization. Global lab revenues might have surged due to strong U.S. performance and growth in the international regions.

Meanwhile, IDEXX Laboratories’ reference lab, veterinary software and diagnostic imaging revenues are expected to have benefited from a recent acquisition of Greenline software and data platform. The unit’s organic growth might have been led by robust recurring revenues, indicating the benefits of ongoing momentum in cloud-based software placements.

The Zacks Consensus Estimate for CAG business revenues implies a decline of 0.04% year over year.

Water

The segment is likely to have achieved strong organic revenues in the fourth quarter due to increased volumes in the United States and Europe. 

The Zacks Consensus Estimate for the Water segment’s revenues implies a decline of 9% year over year.

Livestock, Poultry and Dairy (“LPD”)

The division is likely to have experienced a revenue decline due to reduced swine testing in China and continued lower herd health screening revenues.

The Zacks Consensus Estimate indicates a 7.2% year-over-year increase in LPD revenues for the fourth quarter of 2024.

What Our Model Says for IDXX

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 #4 (Sell).

Top Stocks to Consider

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.

Argenx (ARGX - Free Report) has an Earnings ESP of +44.82% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The company is expected to release fourth-quarter 2024 results on March 6. The Zacks Consensus Estimate for EPS implies a surge of 196.4% from the year-ago quarter’s reported figure.

Arcutis Biotherapeutics (ARQT - Free Report) has an Earnings ESP of +7.97% and a Zacks Rank #2 at present. The company is expected to release fourth-quarter 2024 results on Feb. 25. ARQT’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 17.46%. 

Axogen (AXGN - Free Report) has an Earnings ESP of +36.36% and a Zacks Rank #2 at present. The company is likely to release fourth-quarter 2024 results on March 4. The Zacks Consensus Estimate for EPS implies a surge of 166.7% from the year-ago quarter’s reported figure.

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