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Westbrook, Maine-based IDEXX Laboratories, Inc. (IDXX) develops, manufactures, and distributes products primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets. With a market cap of $40.3 billion, IDEXX Laboratories operations span the Americas, Asia-Pacific, Europe, Africa, and internationally.
IDEXX Laboratories' shares have underperformed the broader market over the past year. Over the past 52 weeks, IDXX stock has dipped 1.8% compared to the S&P 500 Index’s ($SPX) 27.5% returns. In 2024 alone, IDXX declined 12.8%, lagging behind SPX’s 17.8% gains on a YTD basis.
Zooming in further, IDXX also underperformed the S&P Healthcare Equipment SPDR’s (XHE) 3.7% returns over the past 52 weeks and 4.9% gains on a YTD basis.
Shares of IDEXX Laboratories surged 3.1% following its Q2 earnings release on Aug. 6. The company’s revenue grew 6.3% annually to $1 billion, exceeding Wall Street’s expectations. However, its net income dropped 9.3% to $203.3 million or $2.44 per share and missed the consensus estimates by 15%.
Moreover, in the first six months of 2024, it repurchased shares worth $370.3 million, demonstrating its confidence in the company's valuation and commitment to shareholders.
For the current fiscal year, ending in December, analysts expect IDEXX Laboratories to report an EPS growth of 3.9% to $10.45. The company’s earnings surprise history is mixed. It surpassed the consensus estimates in three of the past four quarters while missing on another occasion.
Among the 12 analysts covering the IDXX stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
This configuration is slightly more bullish than a month ago when six analysts recommended “Strong Buys.”
On Aug. 14, Piper Sandler analyst David Westenberg maintained a “Hold” rating with a price target of $520.
IDXX’s mean price target of $570.60 represents a premium of 17.9% from current price levels. The Street-high target of $650 indicates a potential upside of 34.3%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
