On Jul 16, 2014, we initiated coverage on
IDEXX Laboratories, Inc.
) - a developer, manufacturer and distributor of products and
services primarily for the companion animal veterinary, livestock
and poultry, water testing and dairy markets.
IDEXX reported mixed first-quarter 2014 results with its bottom
line steering ahead of the Zacks Consensus Estimate and revenues
missing our expectation. Earnings per share of $0.89 were up 10%, a
penny ahead of the Zacks Consensus Estimate. On the other hand,
revenues of $360.2 billion increased 8% but missed the Zacks
Consensus Estimate of $362 million by a whisker.
The year-over-year growth on both fronts is indicative of the
company's consistent growth via organic means. We are at the same
time encouraged by the global performance of the company during the
In addition, IDEXX is also benefiting from the go-direct
strategy in its organic business. Bolstered by strong and
consistent Companion Animal Group (CAG) performance in the quarter,
the company raised its full year 2014 revenue outlook and expects
to reach the upper end of the organic growth guidance range of 8-9%
Backed by a strong cash position, the company remains committed
to delivering incremental returns to investors, thereby leveraging
earnings power. In the last reported quarter, IDEXX had bought back
approximately 616,000 shares for $70 million.
However, dependence on third part distributors remains an
overhang. Further, intense competition and currency fluctuations
IDEXX currently carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Investors interested in the medical instrument sector can
consider better-ranked stocks like
Sirona Dental Systems Inc.
). While Accuray and Masimo Corp. sport a Zacks Rank #1 (Strong
Buy), Sirona Dental carries a Zacks Rank #2 (Buy).
(We are reissuing this article to correct some mistakes. The
original article, issued yesterday, July 17, 2014, should no
longer be relied upon.)
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IDEXX LABS INC (IDXX): Free Stock Analysis
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