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Idexx Laboratories (NASDAQ:IDXX) just wrapped up 2024 on a high note, crushing analyst expectations with Q4 revenue hitting $954 millionoutpacing estimates of $935 million. EPS landed at $2.62, sailing past forecasts of $2.40, driven by a 7% organic jump in CAG Diagnostics recurring revenue. Gross margin expanded to 59.8%, fueled by strong demand for VetLab consumables, while operating margins ticked up to 27.4%, despite a 10% bump in operating expenses from increased R&D and commercial expansion. With innovation at its core, Idexx kicked off shipments of its inVue Dx Cellular Analyzer, setting the stage for even stronger diagnostics capabilities. Its shares jumped 10.5% this morning.
Looking into 2025, management is guiding for revenue between $4.06 billion and $4.17 billion, reflecting 4% to 7% growth, while EPS is expected to climb to $11.74$12.24, up 10% to 15%. A key driver? The upcoming launch of Idexx Cancer Dx, a game-changing screening tool for canine lymphoma. The company continues doubling down on high-growth diagnostic solutions while leaning into pricing strategies and operational efficiencies to maintain its edge.
Adding to the bullish case, Idexx plans to repurchase $1.5 billion in shares this year, signaling confidence in its cash flow and long-term growth trajectory. Investors should keep an eye on how well Idexx executes its expansion in international markets and sustains its high-margin consumables play. With competition heating up in the veterinary diagnostics space, Idexx's ability to innovate while scaling profitably will be the real test.
This article first appeared on GuruFocus.