Veterinary products maker Idexx Laboratories Inc. (IDXX) Friday reported an increase in net income for the fourth quarter that surpassed analysts estimates, helped by higher revenues from its Companion Animal Group segment. Looking ahead to fiscal 2010, the company lifted the lower end of its earnings view and raised revenue guidance.
Net income for the quarter attributable to stockholders was $30.95 million or $0.51 per share, higher than $23.56 million or $0.39 per share last year. On average, six analysts polled by Thomson Reuters expected the company to report a profit of $0.45 per share for the quarter. Analysts' estimates typically exclude special items.
The Westbrook, Maine-based company's revenues increased 11% to $270.34 million from $243.29 million a year ago. Analysts expected revenues of $262.20 million for the quarter. Organic revenues, which excluded the impact of changes in currency exchange rates, grew 6%, due to strong demand for products such as Catalyst Dx chemistry analyzer.
Segment-wise, Companion Animal Group generated revenues of $217.9 million, up from $196.5 million last year. Changes in foreign currency exchange rates and revenues from a recently acquired business contributed about 4% and 1%, respectively, to revenue growth.
Revenues from Water segment grew to $18.5 million from $17.2 million in the same quarter of 2008. Changes in foreign currency exchange rates contributed around 5% to revenue growth. Production Animal Segment reported revenues of $23.4 million, up from $20.3 million last year. Changes in foreign currency exchange rates contributed approximately 10% to revenue growth.
Gross profit for the quarter increased 10% to $132.9 million from $120.5 million in the same period of 2008.
For fiscal 2009, net income attributable to the company was $122.23 million or $2.01 per share, higher than $116.17 million or $1.87 per share in the comparable period. Annual revenues were $1.03 billion, up 1% from $1.02 billion in the previous year. Seven analysts estimated earnings of $1.95 per share on revenues of $1.02 billion for the year.
Looking ahead to fiscal 2010, the company raised the lower end of its earnings forecast to be in the range of $2.20 to $2.25 per share, from the previous range of $2.15 to $2.25 per share. The company also lifted its full year 2010 revenue guidance to be in the range of $1.10 billion to $1.12 billion from the previous range of $1.08 billion to $1.1 billion. Seven analysts currently expects earnings of $2.20 per share on revenues of $1.10 billion for the year.
According to the company, the guidance reflected an assumption that the value of the U.S. dollar relative to other currencies would remain at its current level for the balance of 2010. Fluctuations in foreign currency exchange rates from current levels could have a significant positive or negative impact on actual results of operations in 2010.
Ayers said, "As we look to 2010, we remain confident in our growth strategies due to the fundamental attractiveness of our markets, our unique and innovative product and service offering, and our global footprint. We also are targeting earnings to grow faster than revenue, reflecting operating margin expansion in our two largest businesses, instruments and consumables and reference laboratory services."
IDXX is currently trading at $55.27 per share, down 4.66%, per share on the Nasdaq. In the past 52-week range, shares have been trading in the range of $27.68 to $59.95.
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