IDEXX Laboratories does everything right in first quarter!
IDEXX Laboratories, a global leader in veterinary diagnostics, veterinary practice software and water microbiology testing, reported a stellar set of figures for its first quarter. The company is exposed to the fast growing pet care trend among middle class consumers: newly affluent people around the world are taking better care of their animal companions, buying more expensive diagnostic treatments. The company’s last three months demonstrates the strong demand that IDEXX’s products are experiencing. Unsurprisingly, the company’s share price (which was already performing incredibly well) surged.
IDEXX’s share price has risen by 32% so far this year
Source: Yahoo Finance
IDEXX said that it saw 16% growth in revenue from the same period in the previous year (12% organic), which was driven by strong performance (+17% year on year) in its CAG Diagnostics segment. It completed 2,822 premium instrument places, which the company described as a “record setting” first quarter, 21% better than the first quarter of 2017. The company reported earnings per share (EPS) of $1.01, saying in a press release that these earnings were “driven by high revenue growth, strong operating margin gains and net benefits from U.S. Tax Reform.”
As a result of the strong first part of the year, IDEXX maintained its revenue guidance, and increased its EPS outlook for full year 2018. The company now expects earnings between $4.06 and $4.20 (a 2¢ increase).
Jonathan Ayers, the company’s chairman and CEO, said: “We are pleased with the outstanding execution of our expanded commercial teams around the world in the first quarter, which resulted in 21% growth in premium instrument placements. These results were fueled by our newest innovations, including SediVue Dx and the launch of the IDEXX Catalyst SDMA Test early in the quarter, which further add to the unique value provided by our point-of-care suite of instruments with real-time patient insight.”
“As we continue to advance our commercial presence, innovation and support for our customers, we are building our reputation as a partner in elevating the standard of care, which leads to both healthy practice growth and sustained organic volume gains by IDEXX.”
Dominion holds IDEXX Laboratories in its Global Trends Luxury Fund.
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