As the trend towards animal companions continues, IDEXX beats the Street
IDEXX Laboratories is the front-runner in the race to provide people with everything they need to keep their animal companions happy. Long gone are the days when pets were considered second-class members of the family. Many millennials, who are waiting to have children until much later in life – refer to their cats, dogs, hamsters, and more as “fur babies”. And they’re lavishing the kind of attention on them that one would expect, given the term. IDEXX Laboratories is reaping the rewards of catering to this demand.
IDEXX Laboratories’ share price has risen by 28% so far this year
Source: Yahoo Finance
IDEXX said that earnings per share for the third quarter rose by 32.9%, year on year, to $1.05. Adjusted for currency effects, that becomes a 39% increase against the year-ago quarter. That’s a 7.1% beat over analysts’ expectations of 98 cents per share. The company also saw strong revenue growth (10.9% against the same period a year ago) which was broadly in-line with consensus estimates. IDEXX raised the lower-end of its guidance range for the rest of the year as a result of this performance.
IDEXX’s revenue comes from a few different sources, including livestock and poultry and dairy segments. But the outperformer – and major contributor to its successful third quarter this year – was its Companion Animal Group. This division is responsible for the pet-care diagnostics and consulting services that modern families are flocking to, and managed 13% organic growth from the year-ago quarter.
Speaking to the strength of IDEXX’s business model, the company’s chairman, president, and CEO, Jonathon W. Ayers, made the following comment on an earnings call: “Overall, our business trends are strong and our revenue performance is on track with our longer-term goals, which is reflected in our 2019 guidance. We are proud to have built a business model with enduring and predictable growth and profit dynamics.”
Dominion holds IDEXX Laboratories in its Global Trends Luxury Fund.
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