We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Idexx (IDXX) Down 10.3% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Idexx Laboratories (IDXX - Free Report) . Shares have lost about 10.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Idexx due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
IDEXX Q4 Earnings Top Estimates , Revenues Grow Y/Y
IDEXX Laboratories, Inc. posted fourth-quarter 2019 earnings per share of $1.04, reflecting a 6.1% year-over-year rise. The figure surpassed the Zacks Consensus Estimate by 14.3%. Comparable-constant-currency earnings growth was 17%, which excludes the impact of CEO transition charges of 14 cents per share.
For 2019, earnings came in at $4.89, up 14.8% (up 21% at comparable constant currency basis) from the year-ago tally. The figure surpassed the Zacks Consensus Estimate by 2.7%.
Revenues in Detail
Fourth-quarter revenues grew 10.2% year over year to $605.4 million. The metric also beat the Zacks Consensus Estimate by 0.9%. The year-over-year upside was primarily driven by strong global gains in Companion Animal Group (“CAG”) Diagnostics’ recurring revenues.
For 2019, revenues totaled $2.41 billion, up 9% on a reported basis and 10% on an organic basis. The figure surpassed the Zacks Consensus Estimate by 0.4%.
Segmental Analysis
IDEXX derives revenues from four operating segments — CAG; Water; Livestock, Poultry and Dairy (LPD); and Other. In the fourth quarter, CAG revenues rose 11% (up 11% organically) year over year to $529.8 million. The Water segment’s revenues were up 9% (up 10% organically) year over year to $32.87 million. LPD revenues rose 8% (up 10% organically) to $36.7 million. Revenues at the Other segment grew to $6.1 million.
Margins
Gross profit in the fourth quarter rose 10.3% to $331.1 million despite a 10.1% rise in cost of revenues to $274.3 million. Accordingly, gross margin expanded 2 basis points (bps) to 54.7%.
Sales and marketing expenses rose 10.2% to $105.7 million, while general and administrative expenses moved up 26.6% to $74.7 million. Additionally, research and development expenses rose 16.7% to $35.2 million. Operating margin in the quarter contracted 190 bps to 19.1%.
Financial Position
IDEXX exited fiscal 2019 with cash and cash equivalents of $90.3 million compared with $123.8 million at the end of 2018. Net cash provided by operating activities at the end of fiscal 2019 was $459.2 million compared with $400.1 million at the end of 2018.
2020 Outlook
IDEXX has raised its revenue guidance for 2020 to a band of $2.62-2.65 billion, indicating organic and reported revenue growth of 9-10.5%. The Zacks Consensus Estimate for revenues of $2.64 billion falls within the company’s guided range.
Meanwhile, the earnings projection has been raised by 12 cents to the band of $5.42 - $5.58, suggesting annualized growth of 13-16% at CER The Zacks Consensus Estimate for earnings stands at $5.42, within the company’s projected range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Idexx has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision has been net zero. It comes with little surprise Idexx has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Idexx (IDXX) Down 10.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Idexx Laboratories (IDXX - Free Report) . Shares have lost about 10.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Idexx due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
IDEXX Q4 Earnings Top Estimates , Revenues Grow Y/Y
IDEXX Laboratories, Inc. posted fourth-quarter 2019 earnings per share of $1.04, reflecting a 6.1% year-over-year rise. The figure surpassed the Zacks Consensus Estimate by 14.3%. Comparable-constant-currency earnings growth was 17%, which excludes the impact of CEO transition charges of 14 cents per share.
For 2019, earnings came in at $4.89, up 14.8% (up 21% at comparable constant currency basis) from the year-ago tally. The figure surpassed the Zacks Consensus Estimate by 2.7%.
Revenues in Detail
Fourth-quarter revenues grew 10.2% year over year to $605.4 million. The metric also beat the Zacks Consensus Estimate by 0.9%. The year-over-year upside was primarily driven by strong global gains in Companion Animal Group (“CAG”) Diagnostics’ recurring revenues.
For 2019, revenues totaled $2.41 billion, up 9% on a reported basis and 10% on an organic basis. The figure surpassed the Zacks Consensus Estimate by 0.4%.
Segmental Analysis
IDEXX derives revenues from four operating segments — CAG; Water; Livestock, Poultry and Dairy (LPD); and Other. In the fourth quarter, CAG revenues rose 11% (up 11% organically) year over year to $529.8 million. The Water segment’s revenues were up 9% (up 10% organically) year over year to $32.87 million. LPD revenues rose 8% (up 10% organically) to $36.7 million. Revenues at the Other segment grew to $6.1 million.
Margins
Gross profit in the fourth quarter rose 10.3% to $331.1 million despite a 10.1% rise in cost of revenues to $274.3 million. Accordingly, gross margin expanded 2 basis points (bps) to 54.7%.
Sales and marketing expenses rose 10.2% to $105.7 million, while general and administrative expenses moved up 26.6% to $74.7 million. Additionally, research and development expenses rose 16.7% to $35.2 million. Operating margin in the quarter contracted 190 bps to 19.1%.
Financial Position
IDEXX exited fiscal 2019 with cash and cash equivalents of $90.3 million compared with $123.8 million at the end of 2018. Net cash provided by operating activities at the end of fiscal 2019 was $459.2 million compared with $400.1 million at the end of 2018.
2020 Outlook
IDEXX has raised its revenue guidance for 2020 to a band of $2.62-2.65 billion, indicating organic and reported revenue growth of 9-10.5%. The Zacks Consensus Estimate for revenues of $2.64 billion falls within the company’s guided range.
Meanwhile, the earnings projection has been raised by 12 cents to the band of $5.42 - $5.58, suggesting annualized growth of 13-16% at CER The Zacks Consensus Estimate for earnings stands at $5.42, within the company’s projected range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Idexx has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision has been net zero. It comes with little surprise Idexx has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.