IDEXX Laboratories rises on Q3 beat, narrows FY22 outlook on forex impact
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IDEXX Laboratories (NASDAQ:IDXX) stock rose ~7% on Tuesday after Q3 results beat estimates, however, the company narrowed its FY22 outlook.
Comparable EPS growth was $2.23, up +12.6% Y/Y.
Revenue increased ~3.9% Y/Y to $841.66M, driven by Companion Animal Group (CAG) Diagnostics recurring revenue growth.
CAG segment revenue increased +4.4% Y/Y to $764.99M. The company said the growth was supported by CAG Diagnostics recurring revenue increase of 5% Y/Y. Record premium instrument placements were 10% higher than the prior year period, driving a 14% Y/Y increase in the global premium instrument installed base.
Water segment revenues grew 7% Y/Y to $40.84M. However, revenue from the Livestock, Poultry and Dairy (LPD) segment fell -2.3% Y/Y to $28.45M.
Group Operating margin was 29.1%, compared to 27.9 % in Q3 2021.
Outlook:
IDEXX reduced the higher end of its full year 2022 revenue outlook and now expects it to be between $3.325B and $3.365B (prior outlook provided during Q2 results $3.305B to $3.385B) consensus $3.37B.
The company said updated foreign exchange projections will reduce reported revenue by $10M, compared to the prior outlook, as a stronger U.S. dollar is now projected to reduce full-year reported growth by about 4%.
IDEXX also lowered its FY22 EPS outlook to be between $7.74 and $7.98 (prior outlook range $7.77 to $8.05). The company noted that the outlook reflects an adjustment of $0.05 at midpoint, including $0.01 of negative impact from higher projected interest rates and $0.04 of negative impact linked to the strengthening U.S. dollar.