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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.
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.comWater Segment Revenue
CapyFin.comLivestock, Poultry, Dairy 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% - 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