Shares of IDEXX Laboratories (IDXX) surged 10% to lead S&P 500 gainers Monday after the provider of veterinary healthcare products and services reported better-than-anticipated results on demand for its animal testing products and higher prices.

The company posted fourth-quarter earnings per share (EPS) of $2.62, with revenue rising nearly 6% year-over-year to $954.3 million. Both exceeded Visible Alpha forecasts.

IDEXX credited the sales gain to a 6% growth in its Companion Animal Group (CAG). It noted its CAG Diagnostics recurring revenue was also up 6%, supported by "high-quality placements of CAG Diagnostics capital instruments across regions, high customer retention, new business gains, and net price realization." 

Revenue from the company's water testing operations rose 8% on "benefits from net price improvement and solid gains in the U.S. and Europe."

IDEXX CEO Highlights 'New Wave of Major Innovation'

CEO Jay Mazelsky said IDEXX was "on the front end of a new wave of major innovation," noting that it would be making its new Cancer Dx screening test for canine lymphoma available late next month in the U.S. and Canada.

The company sees full-year EPS of $11.74 to $12.24, and revenue of $4.055 billion to $4.170 billion. Analysts surveyed by Visible Alpha were looking for $11.89 and $4.14 billion, respectively. 

Despite today’s advance, IDEXX Laboratories shares remain down about 12% over the past year.