IDEXX extends gains after earnings beat despite in-line guidance
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IDEXX Laboratories (IDXX
+4.4%) is trading higher for the fifth straight session after the veterinary services company exceeded expectations with its Q4 2021 results despite issuing its guidance for 2022 in line with current consensus estimates.
Commenting on the financials, Barclays analyst Balaji Prasad attributed the outperformance to âstrength in CAG Diagnostics recurring revenues, gains in instrument placements & expansion in cloud-based software capabilities.â Barclays has an Overweight rating on IDEXX (NASDAQ:IDXX) and a per-share target of $750 to imply a premium of ~46% to the last close.
Fourth-quarter revenue for 2021 jumped 11% YoY to $801M on a reported basis, driven by CAG Diagnostics recurring revenue growth of 13% YoY. A 14% growth in the global instrument installed base contributed to the growth, according to the company.
"We're pleased to see veterinarians look to IDEXX solutions to support their passion to improve patient care and to run their practices more efficiently at a time when they have never been busier,â CEO Jay Mazelsky said, noting the outperformance in CAG Diagnostics and instrument placements.
However, earnings per diluted share for the quarter dropped ~6% YoY to $1.89 from Q4 2020, when there was a $0.25 per share positive impact due to tax reforms in Switzerland.
For 2022, IDEXX (IDXX) projects its topline to reach ~$3.5B â $3.6B, indicating 9% â 11% YoY growth on a reported basis, compared to ~10.6% YoY growth in the consensus.