IDXX Gears Up for Q1 Earnings: What to Expect From the Stock?

IDEXX Laboratories, Inc. IDXX is set to release first-quarter 2025 results on May 1, before the opening bell.

In the last reported quarter, the company posted adjusted earnings per share (EPS) of $2.62, which surpassed the Zacks Consensus Estimate by 9.2%. IDEXX Laboratories’ earnings beat estimates in three of the trailing four quarters and missed in one, the average surprise being 0.78%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).

IDXX’s Q1 Estimates

The Zacks Consensus Estimate for revenues is pegged at $1.02 billion, indicating an increase of 5.5% from the year-ago figure.

The Zacks Consensus Estimate for EPS is pegged at $2.93, indicating an increase of 4.3% from the year-ago figure.

Estimate Revision Trend Ahead of IDXX’s Earnings

Estimates for first-quarter earnings have remained unchanged at $2.93 in the past 30 days.

Let’s explore how things might have progressed for the pet healthcare innovator ahead of the announcement.

Factors Shaping IDXX’s Q4 Performance

Companion Animal Group (“CAG”)

In the first quarter of 2025, CAG Diagnostics’ recurring revenues are likely to have been supported by improvements in average global net prices and international organic gains. IDEXX Laboratories’ strong strategy execution might have been a key factor in international growth (reflected in its strong new business gains and more premium instrument placements), boosting the global premium instrument installed base expansion.

The U.S. CAG Diagnostic’s organic recurring revenues are likely to have benefited from new business gains, sustained high customer retention levels and net price realization. Diagnostic utilization per clinical visit must have continued to expand at the clinic level, resulting in higher diagnostic revenue dollars per clinical visit. We expect the company to have effectively navigated the headwinds from broader cumulative macroeconomic factors affecting consumers and ultimately achieved solid organic CAG Diagnostic revenue growth in the to-be-reported quarter.

IDEXX VetLab consumables are expected to have delivered strong organic growth, fueled by robust performance in the United States and international regions. 

IDEXX Laboratories initiated shipments of the inVue Dx Cellular Analyzer in the fourth quarter of 2024. The company received approximately 1,600 global pre-orders for its inVue Dx, which is expected to have strongly favored the segment’s revenues. It recently launched the IDEXX Cancer Dx with canine lymphoma — a transformative oncology screening. 

Additionally, the company is commercializing three new products and services, which includes Pancreatic Lipase Testing, SmartQC and an updated IDEXX VetLab Station. We expect these developments to have strongly favored the segment’s revenues. 

Additionally, in the fourth quarter, the company experienced continued strong growth from its SediVue platform and ProCyte One. We expect the trend to have continued in the first quarter of 2025, further boosting IDXX’s revenues. 

IDEXX Laboratories, Inc. Price and EPS Surprise

IDEXX Laboratories, Inc. price-eps-surprise | IDEXX Laboratories, Inc. Quote

Revenues in global rapid assays are likely to have declined in the first quarter of 2025 due to pressure on U.S. wellness visits and the addition of the pancreatic lipase slide to the Catalyst menu. 

Meanwhile, IDEXX Laboratories’ reference lab is expected to have benefited from solid normalized volume growth in the United States and international regions, and net price gains. The veterinary software’s organic growth might have been led by robust recurring revenues, indicating the benefits of ongoing momentum in cloud-based software placements.

The Zacks Consensus Estimate for CAG business revenues implies an improvement of 3% year over year.

Water

The segment is likely to have achieved strong organic revenues in the first quarter due to increased volumes in the United States and Europe. 

The Zacks Consensus Estimate for the Water segment’s revenues implies an improvement of 5.1% year over year.

Livestock, Poultry and Dairy (“LPD”)

The division is likely to have experienced revenue growth, supported by increased volumes in the United States, Europe and Latin American regions. The Zacks Consensus Estimate for first-quarter LPD revenues indicates a 0.3% year-over-year decrease.

What Our Model Says for IDXX

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates. However, that is not the case here, as you can see below:

Earnings ESP: IDEXX Laboratories has an Earnings ESP of -2.18%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3 (Hold).

Top Stocks to Consider

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle:

Masimo MASI has an Earnings ESP of +0.64% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is expected to release first-quarter 2025 results soon. 

MASI’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.41%. The Zacks Consensus Estimate for first-quarter EPS implies a year-over-year increase of 61%.

Veeva Systems VEEV has an Earnings ESP of +0.17% and a Zacks Rank #1 at present. The company is expected to release first-quarter fiscal 2026 results shortly.

The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.92%. The Zacks Consensus Estimate for first-quarter EPS implies a year-over-year increase of 16%.

Hims & Hers Health HIMS has an Earnings ESP of +115.69% and a Zacks Rank #2 at present. The company is slated to release its first-quarter 2025 results on May 5, 2025. 

HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 40.42%. The Zacks Consensus Estimate for Hims & Hers Health’s first-quarter EPS suggests a year-over-year improvement of 180%.

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This article originally published on Zacks Investment Research (zacks.com).

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