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Jun 30, 2022
IDEXX Q2 2022 Earnings Report
IDEXX achieved second quarter revenue growth driven by CAG Diagnostics and solid demand for diagnostic services. EPS declined due to discrete R&D investments.
Key Takeaways
IDEXX Laboratories reported a 4% increase in revenue to $861 million in the second quarter of 2022. EPS was $1.56, a 33% decrease, impacted by discrete R&D investments. The company has adjusted its 2022 revenue growth guidance to 3% - 5.5% and EPS outlook to $7.77 - $8.05.
Second quarter revenue growth of 4% reported and 6.5% organic was achieved, driven by CAG Diagnostics recurring revenue growth.
Solid demand for diagnostic services and strong IDEXX execution supported record second quarter premium instrument placements.
EPS was $1.56, representing declines of 33% as reported and 30% on a comparable basis, including $0.72 per share impact from discrete R&D investments.
2022 revenue guidance was adjusted to 3% - 5.5% growth as reported and 5.5% - 8% organic, with an updated EPS outlook of $7.77 - $8.05.
IDEXX
IDEXX
IDEXX Revenue by Segment
IDEXX Revenue by Geographic Location
Revenue by Segment
VetLab Consumables Revenue
CapyFin.comRapid Assay Products Revenue
CapyFin.comReference Labs Revenue
CapyFin.comCAG Services/Accessories Revenue
CapyFin.comCAG Capital Instruments Revenue
CapyFin.comVet Software & Imaging Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
The Company is updating its full year revenue growth outlook to 3% - 5.5% as reported and 5.5% - 8% organically. The Company's EPS outlook of $7.77 - $8.05 reflects an adjustment of $0.32 at midpoint, including $0.05 of negative impact from higher projected interest rates and $0.03 of negative impact related to the strengthening U.S. dollar.
Positive Outlook
- Continued benefits from strong IDEXX execution including additional second half price gains.
- Projected full year CAG Diagnostics recurring revenue growth of 4% - 6% as reported and 6.5% - 9% organic.
- Projected full year operating margins of 26.4% - 26.9%, reflecting ~50 basis points of net operating margin impact related to updated revenue growth estimates.
- Estimated positive share-based compensation activity of $0.12.
- Reduction in average shares outstanding ~ 2.0%
Challenges Ahead
- Reduction in the projected full year revenue growth range of 250 basis points and 200 basis points, respectively.
- Continued near-term pressure on veterinary clinical visits from factors including constraints on vet clinic capacity.
- Lapping of new patient step-up benefits.
- Additional potential growth impacts related to macroeconomic risk.
- Estimated negative year-over-year foreign currency exchange rate change impact of $0.21.
Revenue & Expenses
Visualization of income flow from segment revenue to net income