IDEXX Laboratories (NASDAQ:IDXX) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• IDEXX Laboratories' shares jumped significantly, opening at $662.24 after a better-than-expected earnings report that included $3.63 earnings per share, exceeding estimates of $3.28.
• The company's revenue for the quarter was $1.11 billion, surpassing analyst expectations of $1.06 billion and showing a 10.6% year-over-year increase.
• Analysts have set a consensus target price of $557.88 for IDEXX Laboratories, with a rating of "Moderate Buy" based on multiple positive upgrades from different financial institutions.

IDEXX Laboratories, Inc. (NASDAQ:IDXX - Get Free Report)'s stock price gapped up prior to trading on Monday following a stronger than expected earnings report. The stock had previously closed at $535.54, but opened at $662.24. IDEXX Laboratories shares last traded at $660.61, with a volume of 406,890 shares.

The company reported $3.63 earnings per share for the quarter, topping the consensus estimate of $3.28 by $0.35. IDEXX Laboratories had a return on equity of 64.42% and a net margin of 24.41%. The company had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.06 billion. During the same quarter last year, the firm posted $2.44 EPS. The firm's revenue for the quarter was up 10.6% on a year-over-year basis.

Analysts Set New Price Targets

Several brokerages recently weighed in on IDXX. Morgan Stanley set a $722.00 price objective on IDEXX Laboratories and gave the stock an "overweight" rating in a report on Tuesday. Jefferies Financial Group assumed coverage on IDEXX Laboratories in a report on Tuesday, July 1st. They issued a "buy" rating and a $625.00 price objective for the company. Stifel Nicolaus set a $640.00 target price on IDEXX Laboratories in a report on Monday. Leerink Partners lifted their target price on IDEXX Laboratories from $580.00 to $600.00 and gave the company an "outperform" rating in a report on Thursday, July 17th. Finally, JPMorgan Chase & Co. lifted their target price on IDEXX Laboratories from $550.00 to $675.00 and gave the company an "overweight" rating in a report on Monday. Three research analysts have rated the stock with a hold rating, seven have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $623.56.

Insiders Place Their Bets

In related news, Director M Anne Szostak sold 1,260 shares of the company's stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $512.34, for a total value of $645,548.40. Following the sale, the director directly owned 1,801 shares of the company's stock, valued at $922,724.34. This represents a 41.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.98% of the stock is currently owned by insiders.

Institutional Investors Weigh In On IDEXX Laboratories

Several hedge funds have recently added to or reduced their stakes in the stock. Stratos Wealth Partners LTD. lifted its holdings in shares of IDEXX Laboratories by 1.7% during the second quarter. Stratos Wealth Partners LTD. now owns 1,051 shares of the company's stock valued at $564,000 after purchasing an additional 18 shares in the last quarter. Red Spruce Capital LLC lifted its holdings in shares of IDEXX Laboratories by 1.1% during the second quarter. Red Spruce Capital LLC now owns 1,701 shares of the company's stock valued at $912,000 after purchasing an additional 19 shares in the last quarter. Huntington National Bank lifted its holdings in shares of IDEXX Laboratories by 0.5% during the second quarter. Huntington National Bank now owns 3,651 shares of the company's stock valued at $1,958,000 after purchasing an additional 19 shares in the last quarter. Phoenix Financial Ltd. lifted its holdings in shares of IDEXX Laboratories by 1.7% during the second quarter. Phoenix Financial Ltd. now owns 1,181 shares of the company's stock valued at $633,000 after purchasing an additional 20 shares in the last quarter. Finally, Rise Advisors LLC lifted its holdings in shares of IDEXX Laboratories by 3.9% during the second quarter. Rise Advisors LLC now owns 562 shares of the company's stock valued at $301,000 after purchasing an additional 21 shares in the last quarter. 87.84% of the stock is owned by institutional investors.

IDEXX Laboratories Stock Performance

The stock has a market capitalization of $51.24 billion, a P/E ratio of 53.11, a P/E/G ratio of 4.71 and a beta of 1.49. The company has a quick ratio of 0.81, a current ratio of 1.11 and a debt-to-equity ratio of 0.31. The business has a fifty day moving average price of $537.43 and a 200-day moving average price of $475.11.

IDEXX Laboratories Company Profile

IDEXX Laboratories, Inc develops, manufactures, and distributes products primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets in Africa, the Asia Pacific, Canada, Europe, Latin America, and internationally. The company operates through three segments: Companion Animal Group; Water Quality Products; and Livestock, Poultry and Dairy.