Will IDEXX Laboratories, Inc.’s (NASDAQ:IDXX) Earnings Grow In The Next 12 Months?
Based on IDEXX Laboratories, Inc.’s (NASDAQ:IDXX) earnings update in September 2018, analyst consensus outlook appear cautiously optimistic, as a 21% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 12%. With trailing-twelve-month net income at current levels of US$263m, we should see this rise to US$320m in 2019. Below is a brief commentary around IDEXX Laboratories’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for IDEXX Laboratories
Can we expect IDEXX Laboratories to keep growing?
Longer term expectations from the 8 analysts covering IDXX’s stock is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of IDXX’s earnings growth over these next few years.
From the current net income level of US$263m and the final forecast of US$418m by 2021, the annual rate of growth for IDXX’s earnings is 13%. EPS reaches $6.26 in the final year of forecast compared to the current $3 EPS today. In 2021, IDXX’s profit margin will have expanded from 13% to 16%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For IDEXX Laboratories, I’ve compiled three important factors you should look at:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is IDEXX Laboratories worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether IDEXX Laboratories is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of IDEXX Laboratories? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
