IDEXX Labs (IDXX) Tops Q2 EPS by 2c, Mildly Bumps Outlook
IDEXX Labs (NASDAQ: IDXX) reported Q2 EPS of $0.99, $0.02 better than the analyst estimate of $0.97. Revenue for the quarter came in at $352.6 million versus the consensus estimate of $356.8 million.
IDEXX Labs sees FY2013 EPS of $3.42-3.48, versus prior guidance of $3.40-3.46 and the consensus of $3.44. IDEXX Labs sees FY2013 revenue of $1.37-1.38 billion, versus the consensus of $1.38 billion.
"I am pleased with the Companion Animal Group acceleration in sequential quarter organic revenue growth from 3.6% in the first quarter to 6.8% in the second quarter, reflecting strong growth in instrument consumables and reference lab services," said Jonathan Ayers, the Company's Chairman and Chief Executive Officer. "Our confidence in a projected 10% organic revenue growth in the second half of the year comes from a favorable compare to the second half of 2012, the impact of increased sales capacity for digital and customer information management systems sales, the growing adoption of VetConnect® PLUS with its unique patient-centric approach to diagnostic information and our transformation of the North American diagnostic sales organization."
"We are ahead of plan with our sales force transformation for companion animal diagnostics in North America, which makes up approximately 50% of our revenue. Twenty percent of our sales representatives in North America transitioned to their new customer-centric role as Veterinary Diagnostic Consultants during the second quarter. These representatives demonstrated their ability, in the third month after their role change, to increase the number of customer calls on average by almost 60% per representative as a result of this new territory model, and achieved sales performance equivalent to the old model even though they were new to their roles. Currently, we are also ahead of plan in hiring experienced professionals to expand our field presence, increasing our North American diagnostic field force by 14% in the past three months. Training has recently been completed for new representatives as well as the second (and final) wave of existing field representatives and they are now fully in their new roles," commented Ayers.
"We have now activated VetConnect PLUS, our innovative cloud-based service that provides the most recent diagnostic results in the context of a patient's complete diagnostic history, in 8,500 practices in North America, including several hundred in Canada subsequent to its launch in this important country on July 1st," Ayers added. "We are also on track to continue to expand VetConnect PLUS internationally, with expected launches in the United Kingdom and Australia by early 2014."
"There are several exciting new developments in our Rapid Assay product line, most notably our new SNAP Pro™ mobile device. This new offering automates the SNAP® test as well as pushes results automatically to VetConnect PLUS, resulting in improved staff efficiency and customer savings. The unique diagnostic information provided by our widely-used SNAP tests via SNAP Pro will expand the comprehensive nature of the patient's diagnostic history in VetConnect PLUS and allow for easy sharing of client-friendly electronic summaries of SNAP test results. We will begin taking orders for SNAP Pro in the fourth quarter of 2013 with delivery expected early in the first quarter of 2014," commented Ayers.
For earnings history and earnings-related data on IDEXX Labs (IDXX) click here.
IDEXX Labs sees FY2013 EPS of $3.42-3.48, versus prior guidance of $3.40-3.46 and the consensus of $3.44. IDEXX Labs sees FY2013 revenue of $1.37-1.38 billion, versus the consensus of $1.38 billion.
"I am pleased with the Companion Animal Group acceleration in sequential quarter organic revenue growth from 3.6% in the first quarter to 6.8% in the second quarter, reflecting strong growth in instrument consumables and reference lab services," said Jonathan Ayers, the Company's Chairman and Chief Executive Officer. "Our confidence in a projected 10% organic revenue growth in the second half of the year comes from a favorable compare to the second half of 2012, the impact of increased sales capacity for digital and customer information management systems sales, the growing adoption of VetConnect® PLUS with its unique patient-centric approach to diagnostic information and our transformation of the North American diagnostic sales organization."
"We are ahead of plan with our sales force transformation for companion animal diagnostics in North America, which makes up approximately 50% of our revenue. Twenty percent of our sales representatives in North America transitioned to their new customer-centric role as Veterinary Diagnostic Consultants during the second quarter. These representatives demonstrated their ability, in the third month after their role change, to increase the number of customer calls on average by almost 60% per representative as a result of this new territory model, and achieved sales performance equivalent to the old model even though they were new to their roles. Currently, we are also ahead of plan in hiring experienced professionals to expand our field presence, increasing our North American diagnostic field force by 14% in the past three months. Training has recently been completed for new representatives as well as the second (and final) wave of existing field representatives and they are now fully in their new roles," commented Ayers.
"We have now activated VetConnect PLUS, our innovative cloud-based service that provides the most recent diagnostic results in the context of a patient's complete diagnostic history, in 8,500 practices in North America, including several hundred in Canada subsequent to its launch in this important country on July 1st," Ayers added. "We are also on track to continue to expand VetConnect PLUS internationally, with expected launches in the United Kingdom and Australia by early 2014."
"There are several exciting new developments in our Rapid Assay product line, most notably our new SNAP Pro™ mobile device. This new offering automates the SNAP® test as well as pushes results automatically to VetConnect PLUS, resulting in improved staff efficiency and customer savings. The unique diagnostic information provided by our widely-used SNAP tests via SNAP Pro will expand the comprehensive nature of the patient's diagnostic history in VetConnect PLUS and allow for easy sharing of client-friendly electronic summaries of SNAP test results. We will begin taking orders for SNAP Pro in the fourth quarter of 2013 with delivery expected early in the first quarter of 2014," commented Ayers.
For earnings history and earnings-related data on IDEXX Labs (IDXX) click here.