IDEXX Laboratories Inc (NASDAQ:IDXX) reported fourth-quarter adjusted EPS of $2.53, up 10% year-over-year, beating the consensus of $2.40.

The pet healthcare company reported sales of $954.3 million, beating the consensus of $934.99 million, up 6% on a reported and organic basis in the fourth quarter, driven by Companion Animal Group (CAG) growth of 6% as reported and organically to $870.47 million.

CAG Diagnostics recurring revenue gains of 6% reported and 7% organic in the quarter were supported by continued benefits from IDEXX execution drivers, including high-quality placements of CAG Diagnostics capital instruments across regions, high customer retention, new business gains, and net price realization.

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Water achieved revenue growth of 8% on a reported basis and 9% on an organic basis to $45.15 million, reflecting benefits from net price improvement and solid gains in the U.S. and Europe.

Livestock, Poultry, and Dairy revenue grew 5% on a reported basis and 7% on an organic basis to $34.56 million, supported by solid gains across the U.S., Europe, and Latin America regions.

Gross margins of 59.8% expanded 140 basis points compared to the prior year on a reported basis and expanded 130 basis points on a comparable basis. Gross margin results reflect benefits from net price improvement, which offset inflationary cost impacts, favorable business mix benefits from strong consumable growth, and higher Water gross margins.

Operating margin was 27.4% in the quarter, 20 basis points higher than the prior year period results on a reported basis and 50 basis points higher on a comparable basis.

Guidance: IDEXX Laboratories provides an initial outlook for 2025 revenue of $4.055 billion—$4.170 billion versus a consensus of $4.14 billion, reflecting growth of 4%—7% reported and 6%—9% organic. This is supported by CAG Diagnostics recurring revenue growth of 3%—6% as reported and 5%—8% on an organic basis.

Estimates 2025 EPS of $11.74 – $12.24 versus consensus of $11.92, an increase of 10% – 15% as reported and 8% to 12% on a comparable basis.

Outlook assumes ~$1.5 billion of share repurchases in 2025, subject to market conditions, equivalent to ~4% of current equity market capitalization.

Price Action: IDXX stock is up 11.2% at $469.21 at last check Monday.

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