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IDEXX
🇺🇸 NASDAQ:IDXX
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•
Sep 30, 2022

IDEXX Q3 2022 Earnings Report

IDEXX achieved revenue growth and EPS increase, driven by strong performance in CAG Diagnostics and record instrument placements.

Key Takeaways

IDEXX Laboratories reported a 4% increase in revenue and a 6% increase in EPS for the third quarter of 2022. The growth was driven by a strong performance in the Companion Animal Group (CAG) Diagnostics, which saw a 5% increase in recurring revenue. Record premium instrument placements also contributed to the positive results.

Third quarter revenue grew by 4% reported and 8% organically, driven by CAG Diagnostics recurring revenue growth.

Strong demand for diagnostic services and commercial execution supported record third quarter premium instrument placements.

EPS was $2.15, a 6% increase as reported and 13% on a comparable basis, supported by operating margin expansion.

2022 revenue guidance adjusted to 3.5% - 4.5% growth as reported and 6.5% - 7.5% organic.

Total Revenue
$842M
Previous year: $810M
+3.9%
EPS
$2.15
Previous year: $2.03
+5.9%
Gross Profit
$507M
Previous year: $473M
+7.1%
Cash and Equivalents
$99.2M
Previous year: $145M
-31.7%
Free Cash Flow
$151M
Previous year: $142M
+6.4%
Total Assets
$2.64B
Previous year: $2.39B
+10.7%

IDEXX

IDEXX

IDEXX Revenue by Segment

IDEXX Revenue by Geographic Location

Forward Guidance

The Company is updating its full-year revenue growth outlook to 3.5% - 4.5% as reported and 6.5% - 7.5% organically. The Company updated its full-year reported operating margin outlook to 26.3% - 26.8%. The Company's EPS outlook of $7.74 - $7.98 reflects an adjustment of $0.05 at midpoint, including $0.01 of negative impact from higher projected interest rates and $0.04 of negative impact related to the strengthening U.S. dollar.

Positive Outlook

  • Full-year revenue growth outlook updated to 3.5% - 4.5% as reported and 6.5% - 7.5% organically.
  • The narrowed organic revenue growth range reflects solid third quarter performance and a fourth quarter outlook consistent with prior guidance.
  • Full-year CAG Diagnostics recurring revenue growth of 4% - 5% as reported and 7.5% - 8.5% organically.
  • Continued benefits from strong IDEXX execution including additional second half price gains.
  • Full-year reported operating margin outlook updated to 26.3% - 26.8%.

Challenges Ahead

  • Updated foreign exchange projections will reduce reported revenue by $10 million.
  • A stronger U.S. dollar is now projected to reduce full-year reported growth by approximately 4%.
  • EPS outlook of $7.74 - $7.98 reflects an adjustment of $0.05 at midpoint.
  • $0.01 of negative impact from higher projected interest rates.
  • $0.04 of negative impact related to the strengthening U.S. dollar.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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