IDEXX Laboratories Earnings: Here’s Why Investors Don’t Like These Results

IDEXX Laboratories, Inc. (NASDAQ:IDXX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.77%.

IDEXX Laboratories, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.79% to $0.99 in the quarter versus EPS of $0.91 in the year-earlier quarter.

Revenue: Rose 5.05% to $352.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: IDEXX Laboratories, Inc. reported adjusted EPS income of $0.99 per share. By that measure, the company beat the mean analyst estimate of $0.97. It missed the average revenue estimate of $356.8 million.

Quoting Management: “I am pleased with the Companion Animal Group acceleration in sequential quarter organic revenue growth from 3.6% in the first quarter to 6.8% in the second quarter, reflecting strong growth in instrument consumables and reference lab services,” said Jonathan Ayers, the Company’s Chairman and Chief Executive Officer. “Our confidence in a projected 10% organic revenue growth in the second half of the year comes from a favorable compare to the second half of 2012, the impact of increased sales capacity for digital and customer information management systems sales, the growing adoption of VetConnect® PLUS with its unique patient-centric approach to diagnostic information and our transformation of the North American diagnostic sales organization.”

Key Stats (on next page)…

Revenue increased 6.17% from $332.11 million in the previous quarter. EPS increased 22.22% from $0.81 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.85 to a profit $0.83. For the current year, the average estimate has moved down from a profit of $3.48 to a profit of $3.44 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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