IDEXX Laboratories, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Last week, you might have seen that IDEXX Laboratories, Inc. (NASDAQ:IDXX) released its quarterly result to the market. The early response was not positive, with shares down 2.7% to US$476 in the past week. The result was positive overall - although revenues of US$964m were in line with what the analysts predicted, IDEXX Laboratories surprised by delivering a statutory profit of US$2.81 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for IDEXX Laboratories

Taking into account the latest results, the current consensus from IDEXX Laboratories' eleven analysts is for revenues of US$3.96b in 2024. This would reflect an okay 6.2% increase on its revenue over the past 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.

The analysts reconfirmed their price target of US$562, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values IDEXX Laboratories at US$641 per share, while the most bearish prices it at US$400. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to 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. Compare this to the 240 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 8.1% per year. 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 2026, and you can see them free on our platform here.

You can also see whether IDEXX Laboratories is carrying too much debt, and whether its balance sheet is healthy, 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.