NASDAQ$IDXX

IDEXX Laboratories Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

IDEXX achieved revenue growth and EPS growth, driven by CAG Diagnostics recurring revenue growth and operating margin expansion.

IDEXX Laboratories reported a 9% increase in revenue and an 18% increase in EPS for the third quarter of 2023. The growth was driven by strong performance in the Companion Animal Group (CAG) and Water segments. The company has updated its full-year revenue and EPS outlook.

  • IDEXX achieved third quarter revenue growth of 9% reported and 8% organic, driven by CAG Diagnostics recurring revenue growth of 10% reported and 9% organic.
  • Revenue growth reflects benefits from IDEXX execution drivers including double-digit year-over-year installed base growth across global premium instrument platforms.
  • The company delivered EPS of $2.53, representing 18% growth as reported and 16% on a comparable basis, supported by operating margin expansion of 100 basis points as reported and 140 basis points on a comparable basis.
  • IDEXX adjusted 2023 revenue guidance to $3,635 million - $3,650 million and updated 2023 EPS outlook to $9.74 - $9.90.

Headline financials

Total Revenue

$916M

Previous: $842M+8.8%
EPS (adj)

$2.53

Previous: $2.15+17.7%
Capital Expenditures

-$101M

Previous: -$99.6M-1.5%
Free Cash Flow

$111M

Previous: $81.3M+36.7%
Net Income

$212M

Previous: $181M+17.3%
Operating Income

$275M

Previous: $245M+12.4%
Gross Profit

$548M

Previous: $507M+8.2%
Cash & Equivalents

$332M

Previous: $99.2M+234.5%
Total Assets

$3.09B

Previous: $2.64B+16.9%
Stock-Based Comp

$15.2M

Previous: $12.9M+17.6%

Revenue & EPS history

IDEXX · Revenue · Quarterly

$916M

Q3 2023+8.8%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

IDEXX · $829M total across 9 segments · Q4 2022

  • Reference labs
    $283M+4.2%
  • VetLab consumables
    $261M+3.8%
  • Rapid assay products
    $71.1M+7.1%
  • Vet software & imaging
    $66.9M+15.3%
  • Water
    $39.3M+5.9%
  • Dx capital instruments
    $38.9M-10.5%
  • LPD
    $33.4M-1.7%
  • Dx services & accessories
    $27.1M-2.1%
  • Other
    $7.33M-32.7%

Forward guidance

IDEXX is updating its full year revenue growth outlook range to 7.9% - 8.4% as reported and 8.3% - 8.8% organically. The Company updated its EPS outlook range to $9.74 - $9.90.

Tailwinds

  • Revenue $3,635 - $3,650 million
  • Reported growth 7.9% - 8.4%
  • Organic growth 8.3% - 8.8%
  • CAG Diagnostics Recurring Revenue Growth Reported growth 9.4% - 9.9%
  • CAG Diagnostics Recurring Revenue Growth Organic growth 9.8% - 10.3%

Headwinds

  • Operating Margin 29.6% - 29.8%
  • Operating margin expansion 290 bps - 310 bps
  • Negative impact of foreign exchange ~ 70 bps
  • Comparable margin expansion 360 bps - 380 bps
  • Positive impact of discrete in-license of technology and customer contract resolution ~ 280 bps

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 Q3 2023

Historical avgQ3 2023

+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%

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