To be clear, there wasn't any specific news from the company to cause the stock to rise in January, but the recent market sell-off might have been overdone. In late December, there was positive news about consumer spending trends during the holidays that suggested the economy is not as bad off as analysts had thought during the fall.
Additionally, IDEXX reported fourth-quarter earnings results on Feb. 1, and they showed the company continuing to perform well.
IDEXX delivered organic revenue growth of 10% year over year in the fourth quarter, consistent with management's expectations. Full-year organic revenue increased 11.6% to reach $2.213 billion, which exceeded management's long-term goal of 10%. Full-year revenue was in line with analysts' expectations.
Full-year earnings per share came in at $4.26, up 36% year over year on a constant currency basis. Analysts had expected full-year earnings of $4.20 per share. The robust growth in earnings was a result of a lower tax rate and improved operating margin.
Management reaffirmed guidance for 2019 of organic revenue growth between 9.5% and 11% over 2018, and for earnings per share to be in the range of $4.66 to $4.78.
In a statement, CEO Jonathan Ayers summarized the thesis for owning IDEXX stock over the long term: "Our sustained high growth reinforces the enduring long-term potential we see for our markets around the world as our customers advance their standards of care by leveraging IDEXX's unique innovations. Our global opportunity for growth is supported by evolving pet owners' attitudes, particularly with the millennial generation, toward the importance of care for their family members, and by veterinary practices deepening their appreciation for the value of diagnostics in both sick animal and preventive care."
Check out the latest IDEXX earnings call transcript.