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.
Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends Idexx Laboratories. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.