IDEXX Laboratories, Inc. IDXX posted fourth-quarter 2024 earnings per share (EPS) of $2.62, up 12.9% year over year. The figure surpassed the Zacks Consensus Estimate by 9.1%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Comparable constant-currency EPS of $2.53 improved 10% year over year.

Full-year 2024 earnings of $10.67 rose 6.1% from the 2023 level. The figure exceeded the Zacks Consensus Estimate by 2.1%.

Following the earnings announcement, IDXX stock rose 1.9% in the pre-market trading today.

IDEXX’s Revenues in Detail

Quarterly revenues increased 5.8% year over year (up 6% organically) to $954.3 million. The reported figure topped the Zacks Consensus Estimate by 1.9%.

The year-over-year upside was primarily driven by Companion Animal Group ("CAG") growth of 6% as reported and organically.

Veterinary software, services and diagnostic imaging systems’ revenues increased 13% on a reported basis and 7% organically.

IDEXX Laboratories, Inc. Price, Consensus and EPS Surprise

IDEXX Laboratories, Inc. price-consensus-eps-surprise-chart | IDEXX Laboratories, Inc. Quote

Full-year total revenues of $3.90 billion improved 6% on a reported basis as well as organically from the 2023 level, driven by 10% reported and 10.5% organic growth in CAG Diagnostics recurring revenues. The figure beat the Zacks Consensus Estimate by a close margin of 0.5%.

IDEXX’s Segmental Analysis

IDEXX derives revenues from four operating segments — CAG, Water, Livestock, Poultry and Dairy (“LPD”), and Other.

CAG revenues rose 6% year over year on a reported basis and on an organic basis to $870.5 million.

CAG Diagnostics’ recurring revenues also increased 6% on a reported basis and 7% organically, reflecting double-digit IDEXX VetLab consumable gains, and solid reference laboratory and consulting services growth.

The Water segment’s revenues increased 8% year over year on a reported and 9% on an organic basis to $45.2 million.

For the fourth quarter, LPD revenues increased 5% reportedly and 7% on an organic basis to $34.6 million.           

Revenues from the Other segment decreased 28.6% on a reported basis to $4.1 million.

IDEXX’s Margin Performance

The gross profit rose 8.5% to $570.7 million. The gross margin expanded 144 basis points (bps) to 59.8% despite a 2.2% rise in the cost of revenues.

Sales and marketing expenses rose 5.7% to $150 million. G&A expenses surged 16.9% to $102 million.  R&D expenses jumped 11.4% to $57.7 million. The operating profit in the reported quarter rose 6.4% year over year to $261.1 million. The operating margin in the quarter expanded 15 bps to 27.4%.

IDEXX’s Financial Position

IDEXX exited the fourth quarter with cash and cash equivalents of $288.3 million compared with $453.9 million at the end of 2023. Total debt (including the current portion) was $617.6 million compared with $697.9 million at the end of 2023.

The cumulative net cash provided by operating activities at the end of the fourth quarter was $929 million compared with $906.5 million in the prior-year period.

A Snapshot of IDEXX’s 2025 Guidance

IDEXX’s 2025 outlook assumes approximately 1.5 billion of share repurchases, subject to market conditions, which is equivalent to nearly 4% of current equity market capitalization.

Total revenues for 2025 are expected in the range of $4,055-$4,170 million, suggesting growth of 4-7% on a reported basis and 6-9% on an organic basis. The Zacks Consensus Estimate is currently pegged at $4.16 billion.

IDEXX expects full-year EPS in the range of $11.74-$12.24, indicating reported growth of 10-15%. The Zacks Consensus Estimate for full-year EPS is currently pegged at $11.95.

Our View on IDEXX

IDEXX exited the fourth quarter on a solid note, with both earnings and revenues beating expectations. The company achieved strong global growth across all its testing modalities. The Water segment benefited from net price improvement and solid gains in the United States and Europe. Growth in LPD was backed by solid gains across the United States, Europe and Latin America regions. Moreover, the expansion of both margins in the quarter buoys optimism.

On an impressive note, IDEXX is leading the charge in a new wave of major innovation, such as beginning the shipments of IDEXX inVue Dx Cellular Analyzer in the fourth quarter, and plans to make IDEXX Cancer Dx screening for canine lymphoma available in late March 2025 in the United States and Canada.

IDEXX’s Zacks Rank & Key Picks

IDXX currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader medical space are Quest Diagnostics DGX, ResMed RMD and Cardinal Health CAH.

Quest Diagnostics reported fourth-quarter 2024 adjusted EPS of $2.23, which topped the Zacks Consensus Estimate by 1.8%. Revenues of $2.62 billion beat the Zacks Consensus Estimate by 1.9%. DGX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DGX has an earnings yield of 5.9% compared with the industry’s 4.1% yield. The company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 3.8%.

ResMed, carrying a Zacks Rank #2, posted second-quarter fiscal 2025 adjusted EPS of $2.43, topping the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion exceeded the Zacks Consensus Estimate by 1.6%.

RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.

Cardinal Health, carrying a Zacks Rank #2, posted second-quarter fiscal 2025 adjusted EPS of $1.93, topping the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion exceeded the Zacks Consensus Estimate by 0.7%.

CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report

Cardinal Health, Inc. (CAH) : Free Stock Analysis Report

ResMed Inc. (RMD) : Free Stock Analysis Report

IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research