- IDEXX Laboratories Inc (NASDAQ: IDXX) reported Q2 revenues of $861 million, an increase of 4% Y/Y on a reported basis and 6.5% on an organic basis, missing the consensus of $864.61 million.
- The growth is driven by Companion Animal Group (CAG) Diagnostics' recurring revenue growth of 4% reported and 7% organic.
- U.S. same-store clinical visits at veterinary practices declined 3% Y/Y compared to the prior year period clinical visit growth of 13%, which included benefits from increases in new pet ownership during the COVID-19 pandemic.
- The gross margin of 59.7% increased 50 basis points as reported and was flat on a comparable basis.
- The operating margin was 20.8%, down from 31.4%, including a 900 basis point impact related to $80 million in discrete R&D investments, higher travel costs, and inflationary impacts.
- Comparable EPS was $1.58, a decrease of 30% Y/Y, missing the consensus of $1.65.
- Guidance: IDEXX Laboratories lowered its FY22 sales forecast to $3.31 - $3.39 billion, down from $3.39 billion - $3.47 billion and the consensus of $3.42.
- The company forecasts EPS of $7.77 - $8.05, down from earlier guidance of $8.11 - $8.35 and the consensus of $8.27.
- Price Action: IDXX shares are down 3.89% at $382.64 during the market session on the last check Tuesday.
Read at Benzinga