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On Monday, BTIG analyst Mark Massaro announced an increased price target for IDEXX Laboratories (NASDAQ:IDXX), raising it from $500 to $530, while maintaining a Buy rating on the stock. The revision follows IDEXX’s Q4 performance, which surpassed expectations on both revenue and earnings. With a current market capitalization of $38.5 billion and trading at $469.04, InvestingPro analysis suggests the stock is trading above its Fair Value.
IDEXX Laboratories reported a solid quarter, despite a decline in pet visits. The company’s Q4 results showed a 140 basis point gross margin expansion, a 13% year-over-year increase in earnings per share, and a 12% year-over-year growth in consumables. The company maintains an impressive gross profit margin of 60.72% and has achieved 7.16% revenue growth over the last twelve months. Although wellness patient visits saw a decrease of 4.8% year-over-year in Q4 2024, compared to a 3.4% decrease in the previous quarter, IDEXX has effectively navigated through these challenges. InvestingPro data reveals that the company maintains a GREAT financial health score of 3.11, with 10+ additional exclusive insights available to subscribers.
The company has provided a broad guidance range for 2025, with the midpoint suggesting a 12.5% year-over-year growth in earnings per share, slightly ahead of Wall Street expectations. This positive outlook is bolstered by the anticipated impact of the new InVueDx system, which is expected to contribute over one point of revenue growth. IDEXX also plans to place 4,500 InVueDx systems throughout the year.
BTIG’s Massaro commended IDEXX’s management for their adept handling of the business amidst a tough environment for pet visits in the U.S. The analyst’s confidence in the company’s prospects is reflected in the raised price target, signaling a continued positive stance on IDEXX Laboratories’ stock.
In other recent news, IDEXX Laboratories has been in the spotlight due to its Q4 earnings report, which surpassed analyst projections. The company reported adjusted earnings per share of $2.62, beating the expected $2.39, and revenue of $954.28 million, exceeding the anticipated $933.38 million. This revenue growth, a 6% rise year-over-year, was driven by a 6% increase in Companion Animal Group revenue and a 7% organic gain in CAG Diagnostics recurring revenue.
In response to these strong results, Stifel analysts adjusted their price target for IDEXX, raising it from $440 to $460, while maintaining a Hold rating on the stock. The analysts noted that IDEXX’s financial performance could have caught some investors off guard, possibly due to an overemphasis on the cautious demeanor exhibited by management at the Veterinary Meeting & Expo (VMX), despite the company undergoing a Chief Financial Officer transition.
Looking ahead, IDEXX has projected its revenue for 2025 to be between $4.05 billion and $4.17 billion, indicating a growth of 4-7% as reported and 6-9% on an organic basis. The company also anticipates an adjusted EPS of $11.74 to $12.24. These projections reflect the company’s continued focus on execution drivers, which are expected to support sustained volume gains and an estimated 4-4.5% full-year benefit from net price improvement.
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