What happened
Shares of IDEXX Laboratories (IDXX +2.89%) were moving higher today after the veterinary healthcare company posted better-than-expected results in its third-quarter earnings but slashed its full-year earnings guidance due to the stronger dollar and higher interest rates.
As of 9:53 a.m. ET, the stock was up 9.9%.
NASDAQ: IDXX
Key Data Points
So what
The company said overall revenue was up 4% in the quarter to $841.7 million, but organic sales, which adjust for currency headwinds, increased 8%. That figure still beat analyst estimates at $830.8 million.
Organic revenue in U.S. pet diagnostics, its biggest business segment, was up 10%, and the company saw 14% growth in its global premium installed instrument base, which bodes well for future sales. Its software business also saw solid growth with organic revenue up 15%.
On the bottom line, operating margin expanded 120 basis points to 29.1%, and adjusted earnings per rose 13% to $2.23, which topped the analyst consensus at $2.04.
CEO Jay Mazelsky said, "Record premium instrument placements in the quarter and gains across our business segments were supported by decades of innovation and strong customer engagement."
Now what
Looking ahead, IDEXX did trim its guidance for the rest of the year, but that was due to macroeconomic issues outside of its control rather than any fundamental challenges with the business.
The company now sees earnings per share of $7.74-$7.98, down from an earlier range of $7.77-$8.05. That figures also represents a slight decline from a year ago due to extra expenses in "discrete" R&D spending.
Despite the guidance, the reports show IDEXX is managing well through any macro-level headwinds and remains the clear leader in veterinary diagnostics sector, allowing it to generate wide operating margins. That and the company's solid top-line growth should serve investors in the pet stock well over the long term.
