IDEXX Labs (NASDAQ: IDXX) reported Q4 EPS of $1.04, $0.14 better than the analyst estimate of $0.90. Revenue for the quarter came in at $605 million versus the consensus estimate of $600.56 million.

• Achieves revenue growth in Q4 of 10% on a reported and organic basis, driven by CAG Diagnostics recurring revenue reported and organic growth of 11%
• Reports 19% year-over-year increase in Catalyst placements at new and competitive accounts in Q4, supporting full year growth of 16% in IDEXX\'s premium instrument installed base
• Delivers full year EPS of $4.89, representing 15% growth on a reported basis and 21% on a comparable constant currency basis
• Increases 2020 revenue guidance to $2,620 million - $2,655 million, reflecting consistent expectations for reported and organic revenue growth of 9% - 10.5%
• Raises 2020 EPS outlook range by $0.12 to $5.42 - $5.58, reflecting expectations for continued strong operating trends, higher estimates for share-based compensation tax benefits and favorable adjustments to projected foreign exchange rates impacts

"IDEXX fourth quarter results provided a strong finish to 2019, enabling us to deliver revenue and comparable constant currency EPS gains aligned with our long-term goals. Our full year results were driven by continued strong 12% organic growth in CAG Diagnostics recurring revenues, which now represent 76% of total IDEXX revenue. We are well positioned to build on this progress in 2020, leveraging our expanded global commercial capability and unique innovations which support continued strong diagnostics market growth driven by the adoption of higher standards of care for pets globally," said Jay Mazelsky, the Company's President and Chief Executive Officer.

GUIDANCE:

IDEXX Labs sees FY2020 EPS of $5.42-$5.58, versus the consensus of $5.41. IDEXX Labs sees FY2020 revenue of $2.62-2.655 billion, versus the consensus of $2.63 billion.

Outlook for 2020

The Company is raising its 2020 revenue outlook to $2,620 million - $2,655 million, supported by consistent outlook for reported and organic revenue growth of 9% - 10.5%, reflecting expectations for CAG Diagnostics recurring reported and organic revenue growth of 11% - 12%. Updated foreign exchange rate assumptions increased revenue guidance by approximately $5 million. At the foreign exchange rate assumptions in 2020 noted above, we estimate that the effect of the stronger U.S. dollar will reduce full year 2020 reported revenue growth by approximately 0.5%, EPS growth by approximately 2%, and EPS by an estimated $0.09 per share, including the net impact of lower projected hedge gains of approximately $5 million in 2020.

The Company is increasing its 2020 EPS outlook to $5.42 - $5.58 per share, an increase of $0.12 per share, or targeted growth of 11% - 14% on a reported basis and 13% - 16% on a comparable constant currency basis, which excludes a 3% growth rate benefit from comparisons to the 2019 CEO transition charges. The Company is projecting free cash flow at approximately 75% - 80% of net income in 2020, including approximately 7% impact related to $35 million of major facility capital spending for the completion of our Westbrook, Maine headquarters expansion, the relocation and expansion of our core laboratory in Germany, and the acquisition of real estate associated with a leased U.S. reference lab facility. Spending for major facility projects was $58 million in 2019, lower than earlier estimates driven by later timing of cash deployment. For 2020, the Company projects total capital spending, including major projects, of approximately $140 million - $155 million.

For earnings history and earnings-related data on IDEXX Labs (IDXX) click here.