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Westbrook, Maine-based IDEXX Laboratories, Inc. (IDXX) develops, manufactures, and distributes products mainly for the companion animal veterinary, livestock and poultry, dairy, and water testing markets. Valued at a market cap of almost $37.4 billion, the company also sells a series of portable electrolytes and blood gas analyzers for the human point-of-care medical diagnostics market. It is expected to announce its fiscal Q3 earnings results before the market opens on Thursday, Oct. 31.
Ahead of this event, analysts project the pet healthcare company to report a profit of $2.69 per share, up 6.3% from $2.53 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the last four quarters while missing on one another occasion.
Its earnings of $2.44 per share in the last quarter decreased 9% from a year ago and fell short of the consensus estimates by roughly 15%. The results were primarily driven by a 520-bps contraction in operating margin, mainly fueled by $62 million of expense related to a discrete litigation expense accrual.
For fiscal 2024, analysts expect IDXX to report an EPS of $10.44, up 3.8% from $10.06 in fiscal 2023. Moreover, EPS is expected to increase 17.8% year-over-year to $12.30 in fiscal 2025.
Shares of IDXX have declined 18.5% on a YTD basis, significantly underperforming both the S&P 500 Index's ($SPX) 21.8% rise and the Health Care Select Sector SPDR Fund (XLV) 9.9% return over the same period.
Despite missing Wall Street’s bottom-line estimates, on Aug. 6, shares of IDXX jumped 3.1% after its Q2 earnings release. The company’s reported revenue of $1 billion came in line with the consensus estimates and increased 6% on a yearly basis, primarily due to 6% growth in CAG Diagnostics recurring revenues and 9% growth in water revenues.
Analysts' consensus view on IDEXX Laboratories’ stock is moderately optimistic, with a "Moderate Buy" rating overall. Among ten analysts covering the stock, five recommend a "Strong Buy," one suggests a "Moderate Buy," and four indicate a “Hold.” This configuration is less bullish than three months ago, with seven analysts suggesting a "Strong Buy."
The average analyst price target for IDXX is $554.55, indicating a 22.2% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
