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Dec 31, 2023
IDEXX Q4 2023 Earnings Report
IDEXX reported a 9% increase in revenue and EPS of $2.32 for Q4 2023.
Key Takeaways
IDEXX Laboratories, Inc. announced strong fourth-quarter results, with revenue reaching $902 million, a 9% increase compared to the prior year. Earnings per diluted share were $2.32, up by 13% as reported. The growth was primarily driven by the Companion Animal Group, with recurring revenue gains of 11% in CAG Diagnostics.
IDEXX achieved fourth-quarter revenue growth of 9% reported and 8% organic.
CAG Diagnostics recurring revenue grew by 11% reported and 10% organic.
EPS for the fourth quarter was $2.32, a 13% increase as reported.
The company provided an initial outlook for 2024, with revenue projected between $3,930 million and $4,040 million and EPS between $10.84 and $11.33.
IDEXX
IDEXX
IDEXX Revenue by Segment
Revenue by Segment
VetLab Consumables Revenue
CapyFin.comRapid Assay Products Revenue
CapyFin.comReference Labs Revenue
CapyFin.comVet Software & Imaging Revenue
CapyFin.comWater Segment Revenue
CapyFin.comLivestock, Poultry, Dairy Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
IDEXX provided its initial 2024 financial outlook, with revenue expected to be in the range of $3,930 million to $4,040 million and EPS projected between $10.84 and $11.33.
Positive Outlook
- Revenue growth of 7.5% - 10.5% reported and 7% - 10% organic is expected.
- CAG Diagnostics recurring revenue growth is projected at 7.5% - 10.5% reported and organic.
- Operating margin is expected to be between 30.2% and 30.7%.
- EPS is estimated to be in the range of $10.84 to $11.33, reflecting growth of 8% - 13%.
- Operating cash flow is projected to be 110% - 115% of net income, and free cash flow is expected to be 90% - 95% of net income.
Challenges Ahead
- The 2023 customer contract resolution payment is expected to have a ~40 basis point negative impact on the operating margin.
- The 2023 customer contract resolution payment is expected to have a ~2% negative impact on EPS growth.
- Net interest expense is estimated to be ~$27 million.
- The effective tax rate is projected to be ~22%.
- Capital expenditures are expected to be ~$180 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income