Idexx Laboratories narrows FY23 EPS view to $9.74-$9.90 from $9.64-$9.90

Consensus is for FY23 EPS $9.83. The Company is updating its FY23 revenue growth outlook range to 7.9% – 8.4% as reported and 8.3% – 8.8% organically. This updated outlook is centered on the lower end of the Company’s most recent full year guidance range and at the midpoint of its original full year organic growth estimates, reflecting third quarter results and continued headwinds to clinical visit growth rates globally. The overall reported revenue range was decreased by $20M for updated foreign exchange impact estimates compared to earlier guidance estimates, reflecting the recent strengthening of the U.S. dollar. The Company raised its full year reported operating margin outlook to 29.6% – 29.8%, incorporating strong year-to-date profit performance. Operating margin guidance includes an increased ~70 basis points in year-over-year unfavorable net margin impact from updated foreign currency exchange rate changes, including effects from comparisons to prior year foreign exchange hedge gains. The Company updated its EPS outlook range to $9.74-$9.90, increasing midpoint estimates by 5c per share and maintaining its high end EPS outlook. The Company is maintaining a similar operational outlook at midpoint, as positive revisions to the Company’s operating margin outlook offset adjustments to organic revenue growth estimates. Positive adjustments of ~11c per share to projections for interest expense and effective tax rates, including share-based compensation tax benefits, offset an ~5c negative EPS impact related to updated foreign currency exchange rate estimates – which is now estimated to provide a 25c per share headwind to full year EPS results.