Yahoo Finance

• Organic Revenue Growth: 5% overall, driven by 4.5% in CAG Diagnostics, 7% in Water, and 4% in LPD.

• CAG Diagnostics Recurring Revenue: 4.5% organic growth, net of a 1.5% headwind from equivalent days.

• EPS: $2.96 per share, 5% growth as reported, 7% growth on a comparable basis.

• Gross Margin: 62.4%, up 80 basis points on a comparable basis.

• Operating Expenses: Increased 4% year-over-year as reported, 8% on a comparable basis.

• Free Cash Flow: $208 million in Q1, with a net income to free cash flow conversion ratio of 95% on a trailing 12-month basis.

• Instrument Placements: 4,163 CAG premium instruments placed, a 13% decline year-over-year.

• VetLab Consumable Revenues: Increased 10% organically.

• Water Revenue: Increased 7% organically.

• Livestock, Poultry, and Dairy Revenue: Increased 4% organically.

• 2025 Revenue Guidance: $4,095 million to $4,210 million, with 6% to 9% organic growth outlook.

• 2025 EPS Guidance: $11.93 to $12.43 per share, with 8% to 12% comparable EPS growth.

• Warning! GuruFocus has detected 5 Warning Signs with EL.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• IDEXX Laboratories Inc (NASDAQ:IDXX) reported a 5% organic revenue growth in Q1 2025, driven by strong performance in CAG Diagnostics and veterinary software.

• The company achieved a 9% expansion in its premium instrument install base, indicating robust demand for its diagnostic tools.

• IDEXX Cancer Dx and IDEXX inVue Dx launches are gaining traction, with over 1,000 practices ordering the Cancer Dx test within a month of launch.

• The company reported a 10% organic growth in IDEXX VetLab consumable revenues, reflecting high demand for its consumables.

• IDEXX Laboratories Inc (NASDAQ:IDXX) maintained a healthy balance sheet with leverage ratios of 0.7 times gross and 0.6 times net of cash, supporting financial stability.

Negative Points

• US clinical visits declined by 2.6% in Q1 2025, posing a challenge to revenue growth in the domestic market.

• Global Rapid Assay revenues declined 2% organically, impacted by a shift in pancreatic lipase testing to the Catalyst instrument platform.

• Operating expenses increased by 4% year-over-year, driven by higher R&D and commercial spending.

• Foreign exchange fluctuations posed a challenge, reducing operating profits by $4 million and impacting EPS by approximately $0.04 per share.

• The company faced a 13% decline in CAG premium instrument placements compared to high prior year levels, indicating potential market saturation or competitive pressures.