IDXX - Embedded Expectations Analysis - 2021 07 26
IDEXX Laboratories, Inc. (IDXX:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 75.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about the sustainability of growth, segment gains, and the rollout of ProCyte.Specifically, management may lack confidence in their ability to sustain clinical revenue growth, higher benefits from new patient growth, and strong gains across all of their market segments, particularly in North America. Moreover, they may have concerns about the growth momentum of IDEXX in international markets and the rollout of their next-gen hematology analyzer, ProCyte One. Furthermore, management may lack confidence in their ability to meet their organic revenue growth projections for CAG diagnostics, maintain high international customer engagement in SNAP Pro, and achieve Opex savings. They may also have concerns about the continued execution of customer centric solutions as well as the enhancement of their value proposition and differentiation.
IDEXX Laboratories develops, manufactures, and distributes products and provides services primarily for the companion animal veterinary, livestock and poultry, dairy and water testing markets. The company operates primarily through three business segments: Companion Animal Group, which provides diagnostic and information management-based products and services for the veterinary market; Water Quality Products, which designs, develops, manufactures, and distributes products used in the detection of various microbiological parameters in water; and Livestock, Poultry and Dairy, which provides diagnostic products and services for livestock and poultry health.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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