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IDEXX Sees Higher Clinical Visits Despite Coronavirus Crisis
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IDEXX Laboratories, Inc. (IDXX - Free Report) recently provided an update on how the U.S. Companion Animal Market is trending during the COVID-19 crisis. Interestingly, the company has come up with a positive outlook about the trajectory.
The company monitored the impact of the COVID-19 pandemic on U.S. companion animal practice visit trends in the United States till May 22. This included the impact of stay-at-home and social distancing policies, as well as the related prioritization of sick and emergency testing at veterinary clinics.
Based on the observation, the company noted a meaningful improvement in U.S. clinical visit trends across major regions. Per IDEXX, in the week ended May 22, overall U.S. clinical visits, non-wellness visits and wellness visits surpassed year-ago levels.
First-Quarter Performance Encouraging Too
During the first quarter of 2020, while the economy was reeling under the coronavirus pandemic, IDEXX had already started benefiting from it. Till early March, global Companion Animal Group (CAG) Diagnostics recurring revenue gains were robust. These gains resulted from improved market trends, reflected in 4% same-store growth in U.S. clinical visits. Despite adoption of social distancing policies in Europe and the United States through March, significant declines in clinical visit activity and restriction on access to vet clinics, the momentum was strong enough to lead to robust revenue growth.
CAG instrument placements remained strong in the first quarter, reflecting catalyst placements at new and competitive accounts in North America and in international markets. The company also benefited from second catalyst placements driven by momentum at North American customers.
Veterinary software and diagnostic imaging revenues saw 11% organic growth on continued strong gains in recurring service revenues and sustained solid sales of new Cornerstone and digital imaging systems. Growth in the Neo and SmartFlow cloud-based software offerings also contributed to the revenue uptick.
Of late, IDEXX has been steadily expanding the test menu with CAG. A notable launch includes Catalyst Bile Acids test along with latest updates to its SediVue Neural Network 5.0.
The latest trend improvement post the first quarter is another indicator that the company’s animal health business will be least affected by the COVID-19 crisis in the next few months.
Share Price Performance
Over the past six months, IDEXX has been outperforming its industry with respect to share price movement. The stock has gained 16% against 1.5% decline of the industry.
Zacks Rank & Stocks to Consider
Currently, IDEXX carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Aphria Inc. , Surmodics, Inc. (SRDX - Free Report) and Owens Minor, Inc. (OMI - Free Report) .
Surmodics’ long-term earnings growth rate is estimated at 10%. The company presently sports a Zacks Rank #1.
Owens Minor’s long-term earnings growth rate is estimated at 8.3%. It currently carries a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
IDEXX Sees Higher Clinical Visits Despite Coronavirus Crisis
IDEXX Laboratories, Inc. (IDXX - Free Report) recently provided an update on how the U.S. Companion Animal Market is trending during the COVID-19 crisis. Interestingly, the company has come up with a positive outlook about the trajectory.
The company monitored the impact of the COVID-19 pandemic on U.S. companion animal practice visit trends in the United States till May 22. This included the impact of stay-at-home and social distancing policies, as well as the related prioritization of sick and emergency testing at veterinary clinics.
Based on the observation, the company noted a meaningful improvement in U.S. clinical visit trends across major regions. Per IDEXX, in the week ended May 22, overall U.S. clinical visits, non-wellness visits and wellness visits surpassed year-ago levels.
First-Quarter Performance Encouraging Too
During the first quarter of 2020, while the economy was reeling under the coronavirus pandemic, IDEXX had already started benefiting from it. Till early March, global Companion Animal Group (CAG) Diagnostics recurring revenue gains were robust. These gains resulted from improved market trends, reflected in 4% same-store growth in U.S. clinical visits. Despite adoption of social distancing policies in Europe and the United States through March, significant declines in clinical visit activity and restriction on access to vet clinics, the momentum was strong enough to lead to robust revenue growth.
CAG instrument placements remained strong in the first quarter, reflecting catalyst placements at new and competitive accounts in North America and in international markets. The company also benefited from second catalyst placements driven by momentum at North American customers.
Veterinary software and diagnostic imaging revenues saw 11% organic growth on continued strong gains in recurring service revenues and sustained solid sales of new Cornerstone and digital imaging systems. Growth in the Neo and SmartFlow cloud-based software offerings also contributed to the revenue uptick.
Of late, IDEXX has been steadily expanding the test menu with CAG. A notable launch includes Catalyst Bile Acids test along with latest updates to its SediVue Neural Network 5.0.
The latest trend improvement post the first quarter is another indicator that the company’s animal health business will be least affected by the COVID-19 crisis in the next few months.
Share Price Performance
Over the past six months, IDEXX has been outperforming its industry with respect to share price movement. The stock has gained 16% against 1.5% decline of the industry.
Zacks Rank & Stocks to Consider
Currently, IDEXX carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Aphria Inc. , Surmodics, Inc. (SRDX - Free Report) and Owens Minor, Inc. (OMI - Free Report) .
Aphria’s long-term earnings growth rate is projected at 24.6%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Surmodics’ long-term earnings growth rate is estimated at 10%. The company presently sports a Zacks Rank #1.
Owens Minor’s long-term earnings growth rate is estimated at 8.3%. It currently carries a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>