UK Markets closed

IDEXX Gains on Diagnostics Revenues, New Coronavirus Tests

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·3-min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

On Jul 2, we issued an updated research report on IDEXX Laboratories, Inc. IDXX. The company’s robust worldwide commercial capabilities and best-in-class products, including the next-generation chemistry analyzer, Catalyst One, are key growth drivers for the days to come. The stock carries a Zacks Rank #3 (Hold), at present.

Over the past three months, this leading molecular diagnostic company has outperformed its industry. The stock has gained 26.4% compared with 5.1% rise of the industry.

IDEXX’s first-quarter 2020 organic revenue growth was encouraging. The top line was driven by strong sales at the CAG business. The company witnessed sturdy gains in Diagnostics recurring revenues, supported by double-digit organic gains in both U.S. and international markets in the quarter under review. In terms of COVID-19-related progress, the company’s SARS-CoV-2 (COVID-19) RealPCR Test for pets in response to customer demand buoys optimism.

Further, the company’s human health business, OPTI Medical Systems, developed a PCR laboratory test kit named OPTI SARS-CoV-2 RNA RT-PCR. The company has applied for FDA’s Emergency Use Authorization (EUA) for the same for the detection of SARS-CoV-2.

IDEXX Laboratories, Inc. Price

IDEXX Laboratories, Inc. Price
IDEXX Laboratories, Inc. Price

IDEXX Laboratories, Inc. price | IDEXX Laboratories, Inc. Quote

While the economy has been hit hard by the coronavirus pandemic, IDEXX benefited from it. The company’s Water segment recorded 13% year-over-year growth (up 15% organically), while the Livestock, Poultry and Dairy (LPD) segment recorded 8% year-over-year growth (up 12% organically), both resulting from favorable order timings. This includes accelerated customer stocking orders related to the COVID-19 pandemic.

Of late, IDEXX has been steadily expanding the test menu with CAG. A notable launch of recent times includes Catalyst Bile Acids test along with latest updates to its SediVue Neural Network 5.0.

However, economic stagnation due to the coronavirus outbreak is concerning. Meanwhile, the majority of IDEXX’s consolidated revenues is derived from the sale of products in international markets. Thus, the strengthening of the U.S. dollar’s exchange rate, relative to other currencies, left a negative impact on revenues derived in currencies other than the U.S. dollar as well as on profits drawn from products manufactured in the United States and sold internationally.

Key Picks

Some better-ranked stocks from the broader medical space are Quest Diagnostics Incorporated DGX, Laboratory Corporation of America Holdings LH or LabCorp and QIAGEN N.V. QGEN.

Quest Diagnostics’ long-term earnings growth rate is projected at 7.6%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LabCorp’s long-term earnings growth rate is estimated at 6.1%. The company presently has a Zacks Rank #2 (Buy).

QIAGEN’s long-term earnings growth rate is estimated at 12.2%. It currently sports a Zacks Rank #1.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>


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
 
Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report
 
QIAGEN N.V. (QGEN) : Free Stock Analysis Report
 
Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report
 
IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research