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Sep 30, 2023
IDEXX Q3 2023 Earnings Report
IDEXX achieved revenue growth and EPS growth, driven by CAG Diagnostics recurring revenue growth and operating margin expansion.
Key Takeaways
IDEXX Laboratories reported a 9% increase in revenue and an 18% increase in EPS for the third quarter of 2023. The growth was driven by strong performance in the Companion Animal Group (CAG) and Water segments. The company has updated its full-year revenue and EPS outlook.
IDEXX achieved third quarter revenue growth of 9% reported and 8% organic, driven by CAG Diagnostics recurring revenue growth of 10% reported and 9% organic.
Revenue growth reflects benefits from IDEXX execution drivers including double-digit year-over-year installed base growth across global premium instrument platforms.
The company delivered EPS of $2.53, representing 18% growth as reported and 16% on a comparable basis, supported by operating margin expansion of 100 basis points as reported and 140 basis points on a comparable basis.
IDEXX adjusted 2023 revenue guidance to $3,635 million - $3,650 million and updated 2023 EPS outlook to $9.74 - $9.90.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
IDEXX is updating its full year revenue growth outlook range to 7.9% - 8.4% as reported and 8.3% - 8.8% organically. The Company updated its EPS outlook range to $9.74 - $9.90.
Positive Outlook
- Revenue $3,635 - $3,650 million
- Reported growth 7.9% - 8.4%
- Organic growth 8.3% - 8.8%
- CAG Diagnostics Recurring Revenue Growth Reported growth 9.4% - 9.9%
- CAG Diagnostics Recurring Revenue Growth Organic growth 9.8% - 10.3%
Challenges Ahead
- Operating Margin 29.6% - 29.8%
- Operating margin expansion 290 bps - 310 bps
- Negative impact of foreign exchange ~ 70 bps
- Comparable margin expansion 360 bps - 380 bps
- Positive impact of discrete in-license of technology and customer contract resolution ~ 280 bps
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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