IDEXX posts double digit organic growth in second quarter
IDEXX Laboratories, a world leader in the veterinary diagnostics, veterinary practice software, and water microbiology testing markets, has reported earnings for the second quarter of 2018 that demonstrate a robust business growing fast. The company is exposed to the powerful trend towards pet care, driven by millennial consumers who are increasingly viewing their pets as “fur babies” – and thereby spending much more on their health, happiness and wellbeing than preceding generations did. IDEXX is the company providing many of the veterinary tests that these pampered pups and coddled kittens are put through.
IDEXX is having an incredible year, seeing its share price appreciate by 55% so far
SOURCE: Yahoo Finance
IDEXX said that revenue for the quarter came in at $581 million – that’s an increase of 14% against the second quarter of 2017 on a reported basis, and 12% on an organic basis. This positive result was driven by gains at the company’s Companion Animal Group Diagnostics segment – more proof that pet spending is on the rise. IDEXX saw a similarly strong result on earnings, delivering $1.23 per share for the second quarter. That’s a 29% increase from the comparable quarter last year, or 33% if you strip out currency effects.
Jonathan Ayers, IDEXX’s chairman and CEO, made the following comment over the results:
"The collaboration between our field-based professionals and the veterinary clinicians and practice managers they serve is driving an increased standard of pet care, and an acceleration in growth of diagnostic products and services in our customer base. Our diagnostic innovations that uncover hidden disease in our pets, and uncover it earlier, are appreciated by veterinary staff and pet owners alike. Even with the successes we have achieved to date and our double-digit organic revenue growth in the second quarter, we believe we have only set a foundation for strong growth in our unique diagnostic and software technologies worldwide for years to come."
As a result of these strong results, IDEXX has raised its 2018 revenue outlook to a range between $2,205 million and $2,230 million.
Dominion holds IDEXX Laboratories in its Global Trends Luxury Fund.
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