NASDAQ$IDXX

IDEXX Laboratories Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

IDEXX achieved second quarter revenue growth driven by CAG Diagnostics and solid demand for diagnostic services. EPS declined due to discrete R&D investments.

IDEXX Laboratories reported a 4% increase in revenue to $861 million in the second quarter of 2022. EPS was $1.56, a 33% decrease, impacted by discrete R&D investments. The company has adjusted its 2022 revenue growth guidance to 3% - 5.5% and EPS outlook to $7.77 - $8.05.

  • Second quarter revenue growth of 4% reported and 6.5% organic was achieved, driven by CAG Diagnostics recurring revenue growth.
  • Solid demand for diagnostic services and strong IDEXX execution supported record second quarter premium instrument placements.
  • EPS was $1.56, representing declines of 33% as reported and 30% on a comparable basis, including $0.72 per share impact from discrete R&D investments.
  • 2022 revenue guidance was adjusted to 3% - 5.5% growth as reported and 5.5% - 8% organic, with an updated EPS outlook of $7.77 - $8.05.

Headline financials

Total Revenue

$861M

Previous: $826M+4.2%
EPS (adj)

$1.56

Previous: $2.34-33.3%
Capital Expenditures

-$61.9M

Previous: -$42.7M-44.9%
Free Cash Flow

$70.1M

Previous: $160M-56.2%
Net Income

$132M

Previous: $203M-34.9%
Operating Income

$179M

Previous: $259M-30.9%
Gross Profit

$514M

Previous: $489M+5.1%
Cash & Equivalents

$114M

Previous: $232M-50.7%
Total Assets

$2.61B

Previous: $2.41B+8.1%
Stock-Based Comp

$12.4M

Previous: $9.64M+28.4%

Revenue & EPS history

IDEXX · Revenue · Quarterly

$861M

Q2 2022+4.2%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

IDEXX · $791M total across 7 segments · Q2 2022

  • Reference labs
    $304M+3.6%
  • VetLab consumables
    $266M+3.8%
  • Rapid assay products
    $87.5M+4.3%
  • Vet software & imaging
    $62.4M+26.8%
  • Dx capital instruments
    $36.2M+3.3%
  • Dx services & accessories
    $27.7M+1.2%
  • Other
    $7.38M-25.0%

Forward guidance

The Company is updating its full year revenue growth outlook to 3% - 5.5% as reported and 5.5% - 8% organically. The Company's EPS outlook of $7.77 - $8.05 reflects an adjustment of $0.32 at midpoint, including $0.05 of negative impact from higher projected interest rates and $0.03 of negative impact related to the strengthening U.S. dollar.

Tailwinds

  • Continued benefits from strong IDEXX execution including additional second half price gains.
  • Projected full year CAG Diagnostics recurring revenue growth of 4% - 6% as reported and 6.5% - 9% organic.
  • Projected full year operating margins of 26.4% - 26.9%, reflecting ~50 basis points of net operating margin impact related to updated revenue growth estimates.
  • Estimated positive share-based compensation activity of $0.12.
  • Reduction in average shares outstanding ~ 2.0%

Headwinds

  • Reduction in the projected full year revenue growth range of 250 basis points and 200 basis points, respectively.
  • Continued near-term pressure on veterinary clinical visits from factors including constraints on vet clinic capacity.
  • Lapping of new patient step-up benefits.
  • Additional potential growth impacts related to macroeconomic risk.
  • Estimated negative year-over-year foreign currency exchange rate change impact of $0.21.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.7%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+2.8%

Avg return

30 days after

43%

30 / 69 earnings

Positive

+27.5%

Q2 2025

Best reaction

-18.9%

Q1 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.4%-0.6%-0.1%
Q4 2025-4.8%-3.9%-3.2%
Q3 2025+14.9%+12.5%+15.3%
Q2 2025+27.5%+22.9%+18.4%
Q1 2025+9.0%+9.5%+18.7%
Q4 2024+11.1%+8.9%+3.6%
Q3 2024-7.5%-7.8%-6.5%
Q2 2024+2.6%+6.1%+3.1%
Q1 2024-3.4%-3.2%+0.9%
Q4 2023+7.6%+8.5%+5.8%
Q3 2023+5.0%+5.9%+20.8%
Q2 2023-6.4%-9.1%-7.8%
Q1 2023-2.2%-0.2%-4.0%
Q4 2022+5.2%+0.7%-0.0%
Q3 2022+3.6%+3.4%+22.1%
Q2 2022+2.2%+2.4%-12.1%
Q1 2022-11.7%-20.9%-14.5%
Q4 2021+5.0%+0.8%+4.3%
Q3 2021-6.1%-4.4%-10.1%
Q2 2021-3.6%-0.8%-5.1%
Q1 2021-3.6%-1.0%+0.1%
Q4 2020-1.4%+2.1%-1.3%
Q3 2020+0.5%+5.0%+7.4%
Q2 2020+4.8%+5.8%+2.6%
Q1 2020-0.7%+3.4%+13.3%
Q4 2019-2.8%-3.3%-10.3%
Q3 2019+1.1%-3.5%-8.1%
Q2 2019-4.7%-4.1%+2.7%
Q1 2019+4.5%+8.6%+7.7%
Q4 2018-4.5%-1.9%+1.5%
Q3 2018-3.4%-4.6%-3.9%
Q2 2018-1.7%-0.8%+3.7%
Q1 2018+6.0%+5.5%+10.0%
Q4 2017-0.4%-3.7%-0.7%
Q3 2017-3.1%-5.4%-4.9%
Q2 2017-9.2%-8.3%-6.6%
Q1 2017+0.6%-1.5%+2.9%
Q4 2016+15.7%+16.6%+19.8%
Q3 2016-1.6%-0.9%+6.6%
Q2 2016+15.5%+16.6%+21.0%
Q1 2016+5.6%
Q4 2015+10.4%
Q3 2015-8.8%
Q2 2015+9.4%
Q1 2015-18.9%
Q4 2014-3.1%
Q3 2014+9.8%
Q2 2014-2.7%
Q1 2014+2.9%
Q4 2013+6.5%
Q3 2013-1.0%
Q2 2013-0.6%
Q1 2013-6.4%
Q4 2012-3.5%
Q3 2012-1.1%
Q2 2012-5.3%
Q1 2012-3.4%
Q4 2011-0.5%
Q3 2011+3.2%
Q2 2011+6.3%
Q1 2010+0.0%
Q1 2011+3.0%
Q4 2008-3.9%
Q4 2010-3.9%
Q3 2009-1.4%
Q3 2010-1.4%
Q4 2009-2.7%
Q2 2009-2.7%
Q2 2010-2.7%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro