Personal Finance

Why IDEXX Laboratories, Inc. Reported Higher Today

Image source: Getty Images.

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.

A secret billion-dollar stock opportunity

The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .

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 .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More