(Reuters) -Animal diagnostics maker IDEXX Laboratories on Thursday raised its annual profit forecast after it beat Wall Street estimates for quarterly profit, as it benefited from customer retention and increased demand for its tests and equipment.
The company also raised its revenue forecast to reflect certain gains, with the new outlook reflecting tariffs on internationally sourced materials, including from China, despite uncertainties stemming from the trade war.
IDEXX offers diagnostic equipment, such as blood and urine analyzers, and imaging systems to help vets diagnose and treat animals. They also provide veterinary software and run reference laboratories for more complex tests.
J.P. Morgan analysts expect vet clinic visits to return to growth over the next few years as the number of pet owners and aging pets increases. Visits to vet clinics had fallen in the past few quarters as pet owners became cautious of spending amid economic uncertainty.
IDEXX now projects annual profit between $11.93 per share and $12.43 per share, compared with its previous view of $11.74 and $12.24 per share.
Revenue is expected to be in the range of $4.09 billion and $4.21 billion, compared to its previous range of $4.06 billion and $4.17 billion.
Analysts, on average, expect annual profit to be $11.99 per share and revenue of $4.12 billion, according to data compiled by LSEG.
The Westbrook, Maine-based company recorded total revenue of $998 million for the reported quarter, compared with analysts’ estimates of $998.15 million.
On an adjusted basis, IDEXX reported a profit of $2.96 per share for the quarter ended March 31, above estimates of $2.85 per share.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Leroy Leo)
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