IDEXX Laboratories, Inc. IDXX is set to release third-quarter 2024 results on Oct. 31, before the opening bell.
The company posted adjusted earnings per share (EPS) of $2.44 in the last reported quarter, which missed the Zacks Consensus Estimate by 14.98%. IDEXX Laboratories beat earnings estimates in three of the trailing four quarters and missed in one, the average surprise being 1.51%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
IDXX’s Q3 Estimates
For the third quarter of 2024, the Zacks Consensus Estimate for IDXX’s revenues is pegged at $979.3 million, indicating an increase of 7% from the year-ago figure.
The Zacks Consensus Estimate for the company’s third-quarter 2024 EPS is expected to improve by 6.3% to $2.69.
Estimate Revision Trend Ahead of IDXX’s Earnings
Estimates for IDXX’s Q3 earnings have moved down 0.1% to $10.44 in the past 30 days.
Let’s explore how things have progressed for the pet healthcare innovator ahead of this announcement.
Factors Shaping IDXX’s Q3 Performance
Companion Animal Group (“CAG”)
In the third quarter of 2024, CAG Diagnostics’ recurring revenues are likely to have been supported by improvements in average global net prices and international organic gains. IDEXX Laboratories’ strong execution of strategies may have been a key factor in international growth, reflected in its strong new business gains and more premium instrument placements, boosting the global installed base expansion.
The U.S. CAG Diagnostic’s recurring revenues are likely to have benefited from new business gains, sustained high customer retention levels and net price realization. Diagnostic utilization per clinical visit may have continued to expand solidly at the clinic level, resulting in higher diagnostic revenue dollars per clinical visit, including diagnostics. We expect the company to have effectively navigated the headwinds from broader cumulative macroeconomic factors affecting consumers and ultimately achieved solid organic CAG Diagnostic revenue growth in the to-be-reported quarter.
IDEXX VetLab consumables are expected to have delivered strong organic growth, fueled by robust performance in the United States and international regions. An expanding global premium instrument installed base is likely to have supported this growth.
In the second quarter, the company placed a record number of CAG premium instruments, backed by continued strong growth and Premium Hematology and SediVue placements. We expect the trend to have followed in the third quarter of 2024 as well, further boosting IDXX’s revenues. Additionally, the positive momentum of ProCyte One’s installed base may have contributed to the growth. IDEXX Laboratories’ expanding test menu for the Catalyst platform, including the new Pancreatic Lipase Test, is expected to have strongly favored the segment’s revenues.
IDEXX Laboratories, Inc. Price and EPS Surprise
IDEXX Laboratories, Inc. Price and EPS Surprise
IDEXX Laboratories, Inc. price-eps-surprise | IDEXX Laboratories, Inc. Quote
In global rapid assays, revenues are also likely to have benefited from the solid gains in the United States, including advantages from higher net price realization. Global lab revenues may have surged from strong U.S. performance and growth in the international regions.
Meanwhile, IDEXX Laboratories’ veterinary software and diagnostic imaging revenues are expected to have benefited from a recent acquisition of Greenline software and data platform. The unit’s organic growth may have been led by robust recurring revenues, indicating the benefits of ongoing momentum in cloud-based software placements.
Going by the Zacks Consensus Estimate, CAG business revenues are expected to increase 7% year over year in the third quarter of 2024.
Water
The segment is likely to have achieved strong organic revenues in the third quarter of 2024 due to higher realized prices and increased volumes in the United States and Europe. This is expected to have boosted IDXX’s overall revenues as well in the third quarter of 2024.
According to the Zacks Consensus Estimate, the Water segment’s revenues are projected to improve 8% year over year.
Livestock, Poultry and Dairy (“LPD”)
The division is likely to have benefited from higher realized prices and volume growth in North America, as well as in Europe. However, reduced swine testing in China and continued lower herd health screening revenues may have restricted the overall growth of the segment.
The Zacks Consensus Estimate indicates a modest 0.1% year-over-year increase in LPD revenues for the third quarter of 2024.
What Our Model Says for IDXX
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates. However, that is not the case here, as you can see below:
Earnings ESP: IDEXX Laboratories has an Earnings ESP of -0.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Top Stocks to Consider
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:
Gritstone bio GRTS has an Earnings ESP of +10.64% and a Zacks Rank #2. The company is expected to release third-quarter 2024 results in the coming month. You can see the complete list of today’s Zacks #1 Rank stocks here.
GRTS’ earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 14.7%. The Zacks Consensus Estimate for the company’s third-quarter EPS is expected to surge 51.5% from the year-ago quarter figure.
RadNet RDNT has an Earnings ESP of +20.00% and a Zacks Rank #2. The company is expected to release third-quarter 2024 results in the next month.
RDNT’s earnings surpassed estimates in three of the trailing four quarters and broke even once, with the average surprise being 98.2%. The Zacks Consensus Estimate for RadNet’s third-quarter EPS is expected to increase 21.4% from the year-ago quarter's figure.
Masimo MASI has an Earnings ESP of +0.40% and a Zacks Rank #2. The company is likely to release third-quarter 2024 results in the month to come.
The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 14.6%. The Zacks Consensus Estimate for MASI’s 2024 third-quarter EPS is expected to improve by 33.3% from the year-ago reported figure.
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