What's happening: Shares of veterinary and livestock diagnostic products developer IDEXX Laboratories (NASDAQ:IDXX) soared as much a 11% after reporting better-than-expected second-quarter earnings results. As of 2:30pm ET shares were still up greater than 8%.
Why it's happening: For the quarter, IDEXX Laboratories reported revenue of $413.3 million, a 6% improvement from the year-ago quarter – but that was also inclusive of a 7% revenue reduction caused by the stronger U.S. dollar and negative currency translation. In terms of normalized organic growth, which strips out one-time benefits and expenses, IDEXX delivered 11% year-over-year sales growth, including 13% growth in its companion animal group diagnostic segment.
On a profit basis, IDEXX delivered $0.60 in EPS, up 9% from the prior-year quarter, or up 18% if currency fluctuations are stripped out. IDEXX's management cited strong companion animal diagnostic recurring revenue and growth in its laboratory and consulting services as the primary catalysts behind its growth. Additionally, the company met its own expectations of 3% normalized organic growth in its rapid assay diagnostic products during the quarter.
Comparatively speaking, Wall Street had been forecasting $413.8 million in sales and a profit of $0.57 per share. Overall, IDEXX met sales expectations, but topped EPS forecasts by $0.03 per share. This marks IDEXX's ninth consecutive quarterly EPS beat.
Looking ahead, IDEXX believes it has the tools to accelerate its companion animal diagnostics growth, as well as improve its footprint in overseas markets. For the remainder of 2015 IDEXX anticipates $1.6 billion to $1.62 billion in revenue, and $2.07-$2.12 in EPS. Both figures remain in-line with Wall Street's current forecast of $1.6 billion in sales and $2.09 in EPS for the full year.