One of my favorite ways to add money to my portfolio is to invest in proven compounders with track records of delivering market-beating results after short-term pullbacks. This idea is especially true when the stocks in question are trading at what could prove to be once-in-a-decade opportunities.Two companies that fit this description now are animal healthcare specialists Idexx Laboratories (IDXX 0.02%) and Zoetis (ZTS 0.94%). While Idexx is already one of my daughter's core holdings and Zoetis is one of ...

IDEXX Laboratories, Inc.’s (IDXX) consistent strong performance of the CAG (Companion Animal Group) segment is poised to help it grow in the upcoming quarters. Robust demand for its cloud-based offerings instills optimism, reflecting the company’s focus on improving patient care rather than back-office tasks. Solid performance in the international markets is encouraging. However, unfavorable solvency and the impact of third-party distributors remain our concerns for IDEXX’s operations. In the past year, thi ...

More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a solid management team, a sound capital allocation policy, and, most importantly, reasonable valuation. I do not chase quarterly results, nor do I follow the herd mentality. I do not use short-term stock performance as the measure of a company' ...

Trading at its most reasonable valuation since 2016, this pet healthcare diagnostics leader could be a once-in-a-decade opportunity today.While the debate over whether it's better to pay for high-quality or high-growth businesses will never end, the easiest solution is to find stocks offering both.One company that fits this best-of-both-worlds billing is Idexx Laboratories (IDXX 0.19%), offering leading pet healthcare diagnostics operations. Delivering annualized revenue and free-cash-flow growth of 10% and ...

FOR IMMEDIATE RELEASE Contact: John Ravis, Investor Relations, 1-207-556-8155 IDEXX Laboratories Announces Third Quarter Results ▪ Achieves third quarter revenue growth of 7% as reported and 6% organic, supported by CAG Diagnostics recurring revenue growth of 7% as reported and organic. ▪ Organic revenue growth supported by benefits from IDEXX execution drivers including continued solid new business gains and double-digit year-over-year global premium installed base growth. ▪ Delivers EPS of $2.80, an incre ...

Revenue Growth - Total Company revenue for the three months ended September 30, 2024, was $975,543,000, representing a 6.6% increase compared to $915,527,000 in the same period of 2023[150]. - Organic revenue growth for the same period was 6.1%, driven by growth in CAG Diagnostics recurring revenue and higher realized prices[150]. - CAG segment revenue increased to $891,990,000, a 6.5% growth from $837,160,000 in the prior year, with organic growth at 6.0%[150]. - Water segment revenue in the U.S. grew by 12.9%, reaching $50,162,000, while international revenue increased by 8.5% to $23,491,000[150]. - The U.S. market accounted for $638,058,000 of total revenue, reflecting a 5.8% increase from $603,046,000 in the prior year[150]. - International revenue reached $337,485,000, an 8.0% increase from $312,481,000 in the same period last year[150]. - Total Company revenues increased by 6.7% to $2,943,216,000 for the nine months ended September 30, 2024, compared to $2,759,352,000 in 2023[183]. - Revenues for the CAG segment increased by 6.8% to $2,703,573, compared to $2,531,091 in 2023[192]. Profitability - Gross profit increased to $596,038,000, with a gross profit margin of 61.1%, up from 59.9% in the previous year, reflecting a 120 basis point improvement[152]. - Gross profit for the Total Company increased by 8.7% to $1,808,267,000, with a gross profit margin of 61.4%[183]. - Gross profit for the CAG segment rose by 8.9% to $1,659,768, with a gross profit margin increase of 120 basis points to 61.4%[192]. - Gross profit for the Water segment increased by 9.8% to $97,326, with a gross profit margin of 69.5%[195]. - Gross profit for the Livestock, Poultry and Dairy segment decreased by 3.3% to $45,419, with a gross profit margin of 51.9%[199]. - Gross profit for the Other segment increased by 20.5% to $2,195,000, with a gross profit margin of 49.9%[175]. Operating Expenses - Operating expenses totaled $292,146,000, a 7.1% increase from $272,699,000 in 2023, with research and development expenses rising by 12.5% to $53,978,000[152][153]. - Total operating expenses for the Total Company increased by 16.0% to $941,616,000, primarily due to higher general and administrative expenses[184]. - Total operating expenses for the CAG segment increased by 8.7% to $267,379 thousand, with research and development expenses rising by 14.7% to $49,920 thousand[163]. - Total operating expenses for the LPD segment increased by 2.3% to $13,738,000, with sales and marketing expenses rising by 15.3%[172]. Segment Performance - CAG Diagnostics recurring revenue grew by 6.7% to $783,443,000, driven by higher realized prices and increased volumes[155][156]. - IDEXX VetLab consumables revenue increased by 11.2% to $329,128,000, supported by higher price realization and an expanded menu of tests[155][157]. - Water segment revenues rose by 12.9% to $50,162,000, primarily due to higher realized prices and volumes from Colilert test products[166]. - Revenues for the LPD segment decreased by 2.5% to $28,992,000 for the three months ended September 30, 2024, compared to $29,747,000 in 2023[170]. - Revenues for the Other segment increased by 5.5% to $4,399,000, driven by higher realized prices of OPTI Medical consumables[174]. Cash Flow and Debt - Cash and cash equivalents as of September 30, 2024, totaled $308.6 million, down from $453.9 million at the end of 2023[209][210]. - Net cash provided by operating activities increased by $10.3 million to $667.0 million compared to $656.7 million in the prior year[213]. - Cash used in investing activities rose to $167.2 million, primarily due to the acquisition of a software business[216]. - Cash used in financing activities increased significantly to $645.3 million, driven by $591.0 million in common stock repurchases[218]. - The gross debt amounted to $878,834 thousand, with a gross debt to Adjusted EBITDA ratio of 0.67 as of September 30, 2024[228]. - The net debt was reported at $570,198 thousand, resulting in a net debt to Adjusted EBITDA ratio of 0.43[228]. Tax and Compliance - Effective income tax rate increased to 22.1% for the three months ended September 30, 2024, compared to 20.8% in the prior year[178]. - The effective income tax rate for the nine months ended September 30, 2024, was 21.3%, up from 20.8% in the prior year[207]. - The company remitted a final payment of $21.8 million for the deemed repatriation tax imposed by the U.S. Tax Cut and Jobs Act of 2017 during Q3 2024[229]. Market Conditions - The company anticipates potential impacts from macroeconomic events, including geopolitical instability and inflation, on its future performance[230]. - The company continues to experience high customer retention rates, supporting revenue growth despite macroeconomic challenges[150].

Financial Data and Key Metrics Changes - IDEXX reported a 6% organic revenue growth in Q3 2024, with a 7% growth in CAG diagnostic recurring revenues and a 13% growth in the water business [7][10] - EPS for Q3 was $2.80, reflecting an 11% increase as reported and a 12% increase on a comparable basis [9][24] - Operating margins improved to 31.2%, up 110 basis points year-on-year [24] Business Line Data and Key Metrics Changes - CAG organic revenue growth was 6%, supported by 6% growth in veterinary software services and diagnostic imaging revenues, while LPD experienced a 2% organic decline [10][12] - CAG diagnostic recurring revenue increased 7% organically, with a 5% average global net price improvement [12][23] - Consumable revenues increased 11% organically, driven by strong gains in the US and international regions [19] Market Data and Key Metrics Changes - US CAG diagnostic recurring revenue organic growth was 5%, with a 1.5% growth benefit from equivalent days effects [14] - International growth was supported by 10% organic gains, reflecting strong new business gains and high premium instrument placements [13][22] - The US clinical visit growth was constrained by a 2.1% decline in same-store clinical visits, particularly in discretionary wellness visits [15][16] Company Strategy and Development Direction - IDEXX aims to lead the companion animal diagnostics sector through innovation and a high-touch commercial model, focusing on organic growth [33][34] - The company is on track for the launch of the IDEXX inVue Dx Cellular Analyzer in Q4, with nearly 700 pre-orders already secured [43][44] - IDEXX is expanding its corporate account relationships, which are expected to drive long-term volume growth [42][84] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term macro pressures affecting clinical visit growth but remains confident in long-term demand drivers for diagnostics [36][62] - The updated full-year organic revenue growth outlook is now 5.3% to 6%, reflecting a reduction due to recent US macro trends [26][27] - Management emphasized the resilience of pet owners in prioritizing pet care despite broader economic pressures [62] Other Important Information - Free cash flow for Q3 was $192 million, with a net income to free cash flow conversion ratio of 91% [25] - The company maintained its outlook for free cash flow conversion of 90% to 95% for the full year [25] - IDEXX's balance sheet remains strong, with leverage ratios of 0.7 times gross and 0.4 times net of cash [26] Q&A Session Summary Question: Can you elaborate on the drivers of the reduction outlook and the step down in Q4? - Management indicated that the 3.5% to 4% growth outlook for CAGDX recurring revenue is net of an estimated 0.5% impact from hurricanes, with normalized growth expected to be 4% to 4.5% [58][59] Question: What is the biggest delta between the underlying outlook given in Q2 versus now? - Management noted that the pressure on end clinic demand was greater than anticipated, contributing to the revised outlook [59][62] Question: Can you expand on the reference lab performance and pricing dynamics? - Management reported 2.4% organic growth in reference labs, with volume growth being positive but moderated by new customer agreements affecting price realization [66][70] Question: How do you view pricing as a lever going forward? - Management confirmed a consistent 5% full-year price outlook, with some moderation expected in Q4 due to new business effects [72][73] Question: Can you discuss the impact of pain medication visits on overall visit trends? - Management clarified that while pain medication visits have increased, they do not typically include diagnostics, leading to a decline in overall diagnostic-related visits [104]

IDEXX Laboratories, Inc. (IDXX) posted third-quarter 2024 earnings per share (EPS) of $2.80, up 10.7% year over year. The figure surpassed the Zacks Consensus Estimate by 4.1%.Comparable constant-currency EPS of $2.79 improved 12% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Following the earnings announcement, IDXX stock fell 3.1% at the pre-market trading today.IDEXX’s Revenues in DetailQuarterly revenues increased 6.6% year over year (up 6% organically) to $975.5 ...

For the quarter ended September 2024, Idexx Laboratories (IDXX) reported revenue of $975.54 million, up 6.6% over the same period last year. EPS came in at $2.80, compared to $2.53 in the year-ago quarter.The reported revenue represents a surprise of -0.41% over the Zacks Consensus Estimate of $979.59 million. With the consensus EPS estimate being $2.69, the EPS surprise was +4.09%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wal ...

Idexx Laboratories (IDXX) came out with quarterly earnings of $2.80 per share, beating the Zacks Consensus Estimate of $2.69 per share. This compares to earnings of $2.53 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.09%. A quarter ago, it was expected that this Animal diagnostic and health care company would post earnings of $2.87 per share when it actually produced earnings of $2.44, delivering a surprise of -14.98%.Over ...