Shares of IDEXX Laboratories, Inc. (IDXX), one of the leading providers of animal healthcare solutions, climbed 2.2% to eventually close at $159.49 on Friday, following the company's announcement of record instrument placements in the fourth quarter of 2014.
Moreover, in this announcement management raised IDEXX's outlook for full year 2014 and 2015, which also positively influenced the share price movement. The company is slated to release its comprehensive financial results for full year 2014 and its 2015 outlook on Jan 30.
Per this declaration, IDEXX attained record total placements of its premium chemistry and hematology analyzers in the fourth quarter, which amounted to more than 2000 analyzers across the world. This included installation of 460 Catalysts and 488 premium hematology analyzers in the U.S., reflecting a year-over-year improvement of 9% and 18%, respectively.
Notably, IDEXX also experienced year-over-year growth of 27% in the number of premium analyzers placed internationally in the fourth quarter. Moreover, in the U.S., IDEXX ended the year 2014 with record installations of premium instruments.
As per IDEXX's management, the company witnessed a year of outstanding progress in 2014, as is evident from the 29% growth observed in full year global Catalyst placements that included growth of 20% in the U.S. and 40% in the overseas.
In an attempt to expand its market reach for the Catalyst chemical analyzer, IDEXX plans to launch the novel Catalyst One analyzer in Europe in Jan 2015 and in Latin America and Asia Pacific in the second quarter of 2015.
It is worth mentioning that Catalyst One holds the potential to expand the company's point-of-care chemistry market while also extending its customer base in the international markets.
Reflecting continued strength in its business, IDEXX raised its guidance for organic revenue growth from 9.5% to 10% for 2014, excluding one-time impacts from U.S. channel inventory reductions associated with the transition to the all-direct CAG diagnostics sales strategy in the US. The current Zacks Consensus Estimate for revenues is pegged at $1.50 billion for 2015.
IDEXX also reaffirmed its guidance of 13% to 14% normalized organic revenue growth for 2015. The 2015 outlook reflects expectations for normalized organic revenue growth of 9.5% to 10.5% excluding the benefit of margin capture associated with the US all-direct sales and product distribution strategy. The current Zacks Consensus Estimate for 2015 revenues is pegged at $1.70 billion.
Currently, IDEXX retains a Zacks Rank #3 (Hold). Some well-placed medical instrument stocks include Inogen, Inc. (INGN), Synergetics USA, Inc. (SURG) and ABIOMED, Inc. (ABMD). While Inogen and Synergetics sport a Zacks Rank #1 (Strong Buy), ABIOMED carries a Zacks Rank #2 (Buy).
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