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Jun 30, 2023

IDEXX Q2 2023 Earnings Report

IDEXX reported a strong second quarter with revenue growth and EPS increase driven by CAG Diagnostics.

Key Takeaways

IDEXX Laboratories reported a strong second quarter, with revenue reaching $944 million, a 10% increase both reported and organically. Earnings per share (EPS) grew by 71% to $2.67. The company has updated its 2023 revenue guidance to $3,660 million - $3,715 million and increased its EPS outlook to $9.64 - $9.90.

Second quarter revenue growth of 10% reported and 10% organic.

CAG Diagnostics recurring revenue growth of 11% reported and 12% organic.

Record second quarter global premium instrument placements, supporting 11% annual installed base growth.

EPS of $2.67, representing 71% growth as reported and 77% on a comparable basis.

Total Revenue
$944M
Previous year: $861M
+9.7%
EPS
$2.67
Previous year: $1.56
+71.2%
Gross Profit
$573M
Previous year: $514M
+11.4%
Cash and Equivalents
$133M
Previous year: $114M
+16.2%
Free Cash Flow
$173M
Previous year: $35.8M
+383.3%
Total Assets
$2.87B
Previous year: $2.61B
+10.1%

IDEXX

IDEXX

IDEXX Revenue by Segment

IDEXX Revenue by Geographic Location

Forward Guidance

The Company is updating its full year revenue growth outlook range to 8.5% - 10% as reported and organically. The Company refined its full year reported operating margin outlook to 29.3% - 29.7%. The Company's higher EPS outlook range of $9.64 - $9.90.

Positive Outlook

  • Revenue $3,660 - $3,715 million
  • Reported growth 8.5% - 10%
  • Organic growth 8.5% - 10%
  • CAG Diagnostics Recurring Revenue Growth Reported growth 10% - 11%
  • CAG Diagnostics Recurring Revenue Growth Organic growth 10% - 11%

Challenges Ahead

  • Operating Margin 29.3% - 29.7%
  • Negative impact of foreign exchange ~ 60 bps
  • EPS impact (~ $0.21)
  • EPS growth impact (~ 3%)
  • Net interest expense ~ $40 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income