IDEXX Laboratories beats the Street, continues to grow despite flattening in wider industry
IDEXX Laboratories, the company behind a range of diagnostic tools designed to bring new levels of medical care to pets and other animals, reported earnings over the last few days. It’s good news for investors, who have witnessed the company outperform Wall Street’s expectations and continue to grow despite a backdrop of reports that vet visitations in the US stayed flat in the last quarter. That strongly implies that IDEXX is stealing market share from competitors.
IDEXX Laboratories’ share price has risen by 10% year to date
Source: Yahoo Finance
For the fourth quarter of 2018, IDEXX reported earnings of 98 cents per share. That’s an increase of 127.9% on a year on year basis, and it overshoots the Street’s estimates by 8.9%. The company also logged an impressive degree of earnings growth over the full year, seeing earnings rise by 44.8% against the previous year.
In regards to revenue, IDEXX logged organic growth of 10%, year on year. This once more beat the Street’s predictions – although, this time, by a far smaller margin (0.7%). In what is becoming a familiar story for the company, it was IDEXX’s Companion Animal Group (CAG – the division that capitalises on the trend towards greater care for pets) that drove results upwards. CAG saw organic growth of 13%, and accounts for 75% of IDEXX’s total revenues.
On the company’s earnings call, CEO Jonathan Ayers spoke to the strength of IDEXX’s year, particularly in the fourth quarter. He said: “We finished 2018 with strong revenue growth and impressive bottom-line results, even as we’re making significant incremental investments in the business to support our customers, and that will generate sustained growth for years to come.”
Dominion holds IDEXX Laboratories in its Global Trends Luxury Fund.
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