Yahoo Finance IDEXX Laboratories, Inc. Just Beat EPS By 5.1%: Here's What Analysts Think Will Happen Next
Last week, you might have seen that IDEXX Laboratories, Inc. (NASDAQ:IDXX) released its first-quarter result to the market. The early response was not positive, with shares down 2.7% to US$476 in the past week. IDEXX Laboratories reported US$964m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.81 beat expectations, being 5.1% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for IDEXX Laboratories
After the latest results, the eleven analysts covering IDEXX Laboratories are now predicting revenues of US$3.96b in 2024. If met, this would reflect a reasonable 6.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 6.0% to US$11.06. Before this earnings report, the analysts had been forecasting revenues of US$3.99b and earnings per share (EPS) of US$11.12 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$562. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on IDEXX Laboratories, with the most bullish analyst valuing it at US$641 and the most bearish at US$400 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await IDEXX Laboratories shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that IDEXX Laboratories' revenue growth is expected to slow, with the forecast 8.4% annualised growth rate until the end of 2024 being well below the historical 11% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.1% annually. So it's pretty clear that, while IDEXX Laboratories' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$562, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on IDEXX Laboratories. Long-term earnings power is much more important than next year's profits. We have forecasts for IDEXX Laboratories going out to 2026, and you can see them free on our platform here.
You can also view our analysis of IDEXX Laboratories' balance sheet, and whether we think IDEXX Laboratories is carrying too much debt, for free on our platform here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
