High dollar, fewer vet visits hurt Idexx

Article Excerpt

IDEXX LABORATORIES INC. $56 (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 57.7 million; Market cap: $3.2 billion; Price-to-sales ratio: 3.0; No dividends paid; WSSF Rating: Average) earned $0.62 a share in the three months ended June 30, 2010. That’s up 12.7% from $0.55 a year earlier. Revenue rose 5.9%, to $281.5 million from $265.7 million. Strong sales of new disease-testing equipment to veterinarians pushed up Idexx’s results. However, the company now expects its revenue for 2010 will range from $1.09 billion to $1.1 billion, down from its prior view of $1.1 billion to $1.12 billion. That’s mainly because the high U.S. dollar is hurting the contribution from sales in overseas markets, which account for 40% of its revenue. As well, the slow economy may prompt pet owners to cut back on routine check-ups. That would give veterinarians less to spend on new equipment. Idexx Laboratories is a hold. hold…