IDEXX Laboratories, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

IDEXX Laboratories, Inc. (NASDAQ:IDXX) just released its second-quarter report and things are looking bullish. IDEXX Laboratories beat earnings, with revenues hitting US$1.1b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 10%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from IDEXX Laboratories' twelve analysts is for revenues of US$4.23b in 2025. This reflects a reasonable 4.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 2.2% to US$12.59. In the lead-up to this report, the analysts had been modelling revenues of US$4.15b and earnings per share (EPS) of US$12.21 in 2025. So the consensus seems to have become somewhat more optimistic on IDEXX Laboratories' earnings potential following these results.

Check out our latest analysis for IDEXX Laboratories

The consensus price target rose 24% to US$674, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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$785 and the most bearish at US$420 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the IDEXX Laboratories' past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 9.5% growth on an annualised basis. That is in line with its 8.4% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.2% annually. It's clear that while IDEXX Laboratories' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around IDEXX Laboratories' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 estimates - from multiple IDEXX Laboratories analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for IDEXX Laboratories that you should be aware of.

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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.