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Jun 30, 2021

IDEXX Q2 2021 Earnings Report

Reported revenue growth and EPS growth, driven by Companion Animal Group Diagnostics recurring revenue growth.

Key Takeaways

IDEXX Laboratories reported Q2 2021 revenues of $826 million, a 30% increase, with EPS of $2.34, a 36% increase. The company also increased its 2021 revenue and EPS guidance.

Reported revenue growth of 30% and organic revenue growth of 25%, driven by CAG Diagnostics recurring revenue growth of 30% as reported and 26% organic

Delivered EPS of $2.34, representing 36% growth as reported and 33% on a comparable basis

Increased 2021 revenue guidance to $3,170 million - $3,205 million, reflecting higher expectations for reported growth of 17% - 18.5% and organic growth of 14.5% - 16%, supported by projected CAG Diagnostics recurring revenue growth of 18% - 19.5% as reported and 16% - 17.5% organic

Raised 2021 EPS outlook to $8.20 - $8.36, reflecting an increase of 1% - 1.5% in the organic revenue growth outlook and expectations for higher operating margins of 28.6% - 29.1%

Total Revenue
$826M
Previous year: $638M
+29.6%
EPS
$2.34
Previous year: $1.72
+36.0%
Gross Profit
$489M
Previous year: $379M
+29.0%
Cash and Equivalents
$232M
Previous year: $105M
+120.5%
Free Cash Flow
$211M
Previous year: $184M
+15.1%
Total Assets
$2.41B
Previous year: $1.96B
+23.0%

IDEXX

IDEXX

IDEXX Revenue by Segment

IDEXX Revenue by Geographic Location

Forward Guidance

IDEXX provided full year 2021 guidance for revenue between $3,170 million and $3,205 million and EPS between $8.20 and $8.36.

Positive Outlook

  • Revenue $3,170-$3,205 million
  • Reported growth 17%-18.5%
  • Organic growth 14.5%-16%
  • CAG Diagnostics Recurring Revenue Growth Reported growth 18%-19.5%
  • CAG Diagnostics Recurring Revenue Organic growth 16%-17.5%

Challenges Ahead

  • Operating Margin 28.6%-29.1%
  • Operating margin expansion 290-340 bps
  • Comparable margin expansion 175-225 bps
  • EPS $8.20-$8.36
  • Reported EPS growth 22%-25%

Revenue & Expenses

Visualization of income flow from segment revenue to net income