IDEXX Laboratories

IDXX Q1 2022 Earnings

Reported May 4, 2022 at 6:31 AM ET · SEC Source

Q1 22 EPS

$2.27

BEAT +0.44%

Est. $2.26

Q1 22 Revenue

$836.5M

MISS 0.38%

Est. $839.7M

vs S&P Since Q1 22

-37.4%

TRAILING MARKET

IDXX +33.5% vs S&P +70.9%

Market Reaction

Did IDXX Beat Earnings? Q1 2022 Results

IDEXX Laboratories posted a narrow earnings beat for Q1 2022 but fell just short on the top line, as strong companion animal diagnostics momentum ran up against a meaningful drag from its livestock business. The company reported EPS of $2.27, edging … Read more IDEXX Laboratories posted a narrow earnings beat for Q1 2022 but fell just short on the top line, as strong companion animal diagnostics momentum ran up against a meaningful drag from its livestock business. The company reported EPS of $2.27, edging past the consensus estimate of $2.26 by 0.44%, while revenue of $836.55 million missed the $839.72 million consensus by 0.38%, though it still grew 7.6% year over year. The primary weight on results came from a 21% reported decline in Livestock, Poultry and Dairy revenues, driven by unfavorable comparisons to prior-year African Swine Fever testing programs in China, which offset otherwise solid 8% organic growth in CAG Diagnostics recurring revenue. Operating margin contracted 220 basis points to 29.7% as the company accelerated investment in commercial capabilities. Looking ahead, IDEXX meaningfully trimmed its full-year 2022 EPS outlook to $8.11 to $8.35, reflecting roughly $80.00 million in discrete Q2 R&D licensing costs, currency headwinds, and moderated veterinary clinic visit growth, while projecting revenue of $3.39 billion to $3.47 billion.

Key Takeaways

  • Record first quarter premium instrument placements globally
  • High single-digit organic growth in CAG Diagnostics recurring revenues building on strong prior year
  • Strong growth in cloud-based software placements
  • Net price gains and high customer retention levels across modalities
  • Same-store volume growth and new business gains in reference laboratory services
  • Continued solid recovery in water testing demand
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IDXX YoY Financials

Q1 2022 vs Q1 2021, source: SEC Filings

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IDXX Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 22 Q1 26
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IDXX Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 22 Q1 26

“IDEXX's first quarter results build on the significant gains in demand for companion animal diagnostics and software solutions achieved over the last two years. Veterinarians and their staffs continue to work passionately to support their practices in a demanding environment. IDEXX solutions help to improve patient care and manage increased demands on their time, as well as to continue to advance higher standards for pet healthcare, including utilization of diagnostics. This is reflected in continued strong IDEXX premium instrument placements globally, expansion of our cloud-based software solutions and high single-digit organic growth in CAG Diagnostics recurring revenues compared to very strong prior year growth levels. These results demonstrate the benefits of our ongoing focus on innovation, the continued high level of customer-focused execution of IDEXX teams globally and our commitment as a purpose-driven company to improving the health and well-being of pets, people and livestock.”

— Jay Mazelsky, Q1 2022 Earnings Press Release