What: IDEXX Laboratories (NASDAQ:IDXX) is up 14% at 12:45 p.m. EDT after reporting outstanding second-quarter earnings and raising full-year guidance.
So what: Revenue was up 13% year over year, driven by sales of IDEXX Laboratories' tests for companion animals. Installations of the machines that run those tests also had a nice year-over-year increase, up 31%, thanks in part to the launch of IDEXX Laboratories' new SediVue Dx, a urine sediment point-of-care analyzer.
Earnings per share were up 23% year over year. The bottom line grew faster than revenue, thanks to increased operating margins and a benefit from the federal research-and-development tax credit that wasn't available in the year-ago quarter.
Now what: With a strong start to the year, management increased 2016 revenue guidance by $25 million, so IDEXX Laboratories now expects revenue to be 9.5% to 11% higher than last year.
Earnings per share guidance for 2016 was also increased to a range of $2.32 to $2.39 per share, based on the aforementioned higher revenue and expanding operating margin. That equates to year-over-year growth of 13% to 17%. Considering that the company faces currency headwinds that negatively affect 2016 earnings-per-share growth by 10 percentage points, that growth is not too shabby.