Q3 2023 Earnings Summary
Reported on Nov 1, 2023 (Before Market Open)
Pre-Earnings Price$399.47Last close (Oct 31, 2023)
Post-Earnings Price$388.37Open (Nov 1, 2023)
Price Change
$-11.10(-2.78%)
- IDEXX expects sustained long-term growth potential of 10%, driven by positive factors like competitive positioning, expansion of diagnostics frequency and utilization, adoption of IDEXX technologies, and favorable pet ownership demographics.
- IDEXX's integrated solution set, including in-clinic and reference lab diagnostics and differentiated software suite, positions the company well to take market share, supported by continuous innovation and new platform launches that have a significant multiplier impact on the business.
- Despite challenges in visit trends, IDEXX continues to see growth in diagnostic frequency and utilization within veterinary practices, particularly in non-wellness visits where diagnostics usage is 7% to 8% higher, which is a strong positive for the business.
- Declining U.S. clinical visit trends: U.S. clinical visits declined by 2% in Q3 and 1% in Q2, contrary to IDEXX's expectations of flat growth. This decrease may negatively impact demand for the company's diagnostic products.
- Organic growth below long-term target: IDEXX is targeting 8.5% organic growth for 2023, which is below its long-term target of 10%, despite implementing 7% to 8% price increases. This reliance on price increases suggests that volume growth is lagging.
- Potential challenges extending into 2024: Analysts express concern that if current trends persist, IDEXX's growth in 2024 may also fall below the long-term target, due to ongoing clinic capacity issues and macroeconomic factors.
Research analysts covering IDEXX LABORATORIES INC /DE.