Idexx Laboratories Profit Down, But Revenues Up 11%

(RTTNews) - Idexx Laboratories Inc. (IDXX) Tuesday reported a drop in profit for the fourth quarter, despite a 11 percent growth in revenues, hurt mostly by higher expenses. Nonetheless, Idexx Laboratories stock is currently up a near six percent on the Nasdaq.

Westbrook, Maine-based Idexx' fourth-quarter profit dropped to $43.26 million or $0.82 per share from $43.35 million or $0.78 per share last year. On a per share basis, earnings improved due to lower number of shares outstanding.

Last year's bottom line included a $3.5 million milestone payment related to the 2008 sale of product rights previously included in the pharmaceutical product line, which added $0.04 per share.

On average, nine analysts polled by Thomson Reuters expected earnings of $0.81 per share for the quarter. Analysts' estimates typically exclude special items.

Idexx said its revenue for the fourth quarter grew 11 percent to $354.07 million from $319.54 million a year ago. Wall Street expected revenues of $347.08 million for the quarter.

Commenting on the results, Chief Executive Jonathan Ayers said, "I am very pleased with the strong organic growth we achieved in the quarter, reflecting solid gains across our business. Organic growth in recurring companion animal diagnostic revenue was over 11%, and strong placements of our premium chemistry and hematology instruments, computer systems, and digital radiography products also contributed to the strong performance."

Companion animal group revenues for the fourth quarter rose to $293.6 million from $263.5 million last year. Water revenues increased to$21.7 million from $20.9 million. Livestock, Poultry and Dairy revenues advanced to $32.4 million from $28.9 million last year.

Sales and marketing costs rose to $66.7 million from $52.7 million last year. General and administrative expenses rose to $38.1 from $31.8 million.

Looking forward to the full year, the company expect earnings in the range of $3.76 to $3.86 per share, adjusted earnings of $3.82 to $3.92 per share and revenues of $1.48 billion to $1.50 billion. Analysts currently see full year earnings of $3.84 per share on revenues of $1.48 billion.

IDXX is currently trading at $115.13, up $6.04 or 5.54%, on a volume of about 0.29 million.