【brakes squeal only in reverse】Why Is Idexx (IDXX) Down 10.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Idexx Laboratories (IDXX). Shares have lost about 10.3% in that time frame,brakes squeal only in reverse underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Idexx due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
IDEXX Q4 Earnings Top Estimates , Revenues Grow Y/Y
IDEXX Laboratories, Inc
.
posted fourth-quarter 2019 earnings per share of $1.04, reflecting a 6.1% year-over-year rise. The figure surpassed the Zacks Consensus Estimate by 14.3%. Comparable-constant-currency earnings growth was 17%, which excludes the impact of CEO transition charges of 14 cents per share.
For 2019, earnings came in at $4.89, up 14.8% (up 21% at comparable constant currency basis) from the year-ago tally. The figure surpassed the Zacks Consensus Estimate by 2.7%.
Revenues in Detail
Fourth-quarter revenues grew 10.2% year over year to $605.4 million. The metric also beat the Zacks Consensus Estimate by 0.9%. The year-over-year upside was primarily driven by strong global gains in Companion Animal Group (“CAG”) Diagnostics’ recurring revenues.
For 2019, revenues totaled $2.41 billion, up 9% on a reported basis and 10% on an organic basis. The figure surpassed the Zacks Consensus Estimate by 0.4%.
Segmental Analysis
IDEXX derives revenues from four operating segments — CAG; Water; Livestock, Poultry and Dairy (LPD); and Other. In the fourth quarter, CAG revenues rose 11% (up 11% organically) year over year to $529.8 million. The Water segment’s revenues were up 9% (up 10% organically) year over year to $32.87 million. LPD revenues rose 8% (up 10% organically) to $36.7 million. Revenues at the Other segment grew to $6.1 million.
Margins
Gross profit in the fourth quarter rose 10.3% to $331.1 million despite a 10.1% rise in cost of revenues to $274.3 million. Accordingly, gross margin expanded 2 basis points (bps) to 54.7%.
Sales and marketing expenses rose 10.2% to $105.7 million, while general and administrative expenses moved up 26.6% to $74.7 million. Additionally, research and development expenses rose 16.7% to $35.2 million. Operating margin in the quarter contracted 190 bps to 19.1%.
Financial Position
IDEXX exited fiscal 2019 with cash and cash equivalents of $90.3 million compared with $123.8 million at the end of 2018. Net cash provided by operating activities at the end of fiscal 2019 was $459.2 million compared with $400.1 million at the end of 2018.
2020 Outlook
IDEXX has raised its revenue guidance for 2020 to a band of $2.62-2.65 billion, indicating organic and reported revenue growth of 9-10.5%. The Zacks Consensus Estimate for revenues of $2.64 billion falls within the company’s guided range.
Meanwhile, the earnings projection has been raised by 12 cents to the band of $5.42 - $5.58, suggesting annualized growth of 13-16% at CER The Zacks Consensus Estimate for earnings stands at $5.42, within the company’s projected range.
Story continues
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Idexx has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision has been net zero. It comes with little surprise Idexx has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
View comments
-
BRIEF-Wangfujing Group, BTG Hotels' Chairman Passed Away Due To Illness5 Best Performing Stocks of the Top ETF of 2018Lufthansa warns profits to slide again this yearLamorne Morris To Play Young Garrett Morris In ‘SNL 1975’ Origin FilmUkraine prime minister ousted, president seeks 'new brains'BRIEF-Shenji Group Kunming Machine Tool Sees FY Consol Net Loss Attributable RMB251.1 MLNHere’s What Cathay General Bancorp’s (NASDAQ:CATY) P/E Ratio Is Telling UsThree Understated Metrics For Collector AB (STO:COLL) You Should KnowHere is Why Growth Investors Should Buy Brinker International (EAT) NowWhy General Electric Stock Popped 8% Today
下一篇:Backend Benchmarking Publishes 17th Edition of The Robo Report Covering the 3rd Quarter of 2020
- ·From wagyu beef to melons, Japan's $2.2 trillion virus rescue piques struggling firms
- ·Why Did Helmerich & Payne’s Fiscal 2Q16 Earnings Miss Estimates?
- ·The Zacks Analyst Blog Highlights: Short S&P 500 ETF, Short Russell 2000 ETF, Short QQQ ETF, Family Dollar Stores and Dollar General
- ·The Super Bowl is worth billions each year — Here's who makes what
- ·Why Foundation Building Materials (FBM) Could Be an Impressive Growth Stock
- ·Supply Chain And Logistics Degree Programs On The Upswing
- ·What does U.S. Physical Therapy, Inc.’s (NYSE:USPH) Balance Sheet Tell Us About Its Future?
- ·Meet the New, Revamped Hollywood Foreign Press Association, 105 Members Strong
- ·HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Urges Opera Limited (OPRA) Investors With Losses to Contact its Attorneys: Important Class Action Deadline Approaching
- ·5G is coming in 2019, and it's going to change your life
- ·An Intrinsic Calculation For Pacira Pharmaceuticals, Inc. (NASDAQ:PCRX) Shows It’s 34.81% Undervalued
- ·New Guru Philippe Laffont's Top 5 Holdings
- ·Gilead Sciences Could Be the First to Beat the Coronavirus
- ·Delphi Merges with Tokio Marine
- ·Why Tesla, MyoKardia, and Hologic Slumped Today
- ·BRIEF-My Heart Bodibra Group Says Currently In Negotiation For Possible Acquisition Of Shareholding Interest In A Co
- ·Trump's coronavirus stimulus is still evolving. Here's what it should include, experts say
- ·Camila Cabello Debuts Blond Hair Makeover: See Her New Look
- ·GM electric vehicle tax credit phase-out to begin this year: Report
- ·Online Shopping & Travel Mall MyReviewsNow Promotes Affiliate Merchant Camping World's '8th Annual Outdoor & RV Expo' to Its Members and Shoppers
- ·Patrick Downey Is The President of Orezone Gold Corporation (CVE:ORE) And They Just Spent US$108k On Shares
- ·Galveston Attorney Charged With Representing Clients He'd Never Met
- ·BRIEF-Ronshine China Holdings Posts December Total Contracted Sales Of RMB13.66 Bln
- ·Cee Lo Holds Court at Primary Wave Pre-Grammy Party, Larry Mestel Calls RoccStar, Trevor Jackson ‘The Future’
- ·Coronavirus to have substantial impact on trade: WTO
- ·Who are the winners and losers in India’s Budget 2019?
- ·Did Business Growth Power Ling Yui Holdings's (HKG:784) Share Price Gain of 222%?
- ·What Should Investors Know About Ascott Residence Trust’s (SGX:A68U) Future?
- ·Galveston Attorney Charged With Representing Clients He'd Never Met
- ·The Lotus Elise GT1 Is Not Your Average Elise
- ·Why the Earnings Surprise Streak Could Continue for Dick's (DKS)
- ·Consider This Commodity ETF in January
- ·Hacker Group: Pay Bitcoin Ransom or We’ll Release 9/11 Papers
- ·‘The Bear’ Fans Notice a Potential Continuity Error During Tina’s Backstory Episode in Season 3
- ·Petrolympic Announces Closing of Private Placement
- ·Girl Scout Cookies 2019: Meet the New Gluten-Free Flavor