WESTBROOK, Maine - IDEXX Laboratories, Inc. (NASDAQ: IDXX) reported second quarter earnings that fell short of analyst expectations and lowered its full-year guidance, as the veterinary diagnostics company took a significant litigation-related charge.
IDEXX posted earnings per share of $2.44 for the quarter, missing the analyst consensus estimate of $2.89. Revenue came in at $1 billion, slightly below expectations of $1.01 billion.
The company's results were impacted by a $62 million, or $0.56 per share, expense accrual related to an ongoing litigation matter. Excluding this charge, IDEXX said comparable EPS would have increased 15% year-over-year.
"Continued high levels of execution from IDEXX teams drove solid global growth and strong operational performance in the second quarter," said Jay Mazelsky, President and CEO.
IDEXX reported 6% year-over-year revenue growth, or 7% on an organic basis. The company's Companion Animal Group segment saw 6% reported growth and 7% organic growth.
For the full year 2024, IDEXX cut its earnings guidance to $10.31-$10.59 per share, down from its previous outlook and below the $11.01 consensus estimate. The company now expects 2024 revenue of $3.885-$3.945 billion, compared to its prior forecast of $3.895-$3.965 billion.
The reduced outlook reflects the impact of the litigation expense as well as an adjustment to organic revenue growth projections based on recent trends in U.S. clinical visit levels, IDEXX said.
The company maintained its goals for comparable operating margin improvement in 2024 despite the litigation charge.
IDEXX shares were not yet active in pre-market trading following the earnings release. The stock has gained about 15% year-to-date.
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