IDEXX cuts annual sales forecast as pet owners remain cautious on vet visits

Nov 1 (Reuters) – Animal health diagnostic services provider IDEXX Laboratories (IDXX.O) cut its annual sales forecast after missing third-quarter revenue estimates on Wednesday, hurt by slower-than-expected growth in visits by pet owners to veterinary clinics.

Pet owners have become cautious in their spending amid a cost-of-living crisis in some parts of the world, weighing a recovery in veterinary clinic visits after disruptions caused by lockdowns led by the pandemic and lack of staff.

Online retailer of Chewy pet products (CHWY.N) and pet health and welfare company Petco (WOOF.O) they also reported that a change in consumer spending pressured demand for their pet products.

IDEXX said its annual revenue would also be hurt by a stronger dollar.

The company now sees annual revenue between $3.64 billion and $3.65 billion, compared to its previous forecast of $3.66 billion to $3.72 billion.

Analysts were expecting annual sales of $3.68 billion, according to LSEG data.

Sales of IDEXX’s pet group unit, which offers diagnostics and IT services to veterinary clinics, rose 9.4% to $837.16 million in the quarter.

The animal health diagnostics company expects to post full-year earnings of $9.74-$9.90 per share, compared to its previous projection of $9.64-$9.90 per share.

IDEXX’s total sales in the quarter rose about 9% to $916 million, but missed the average analyst estimate of $926.16 million.

Its quarterly profit was $2.53 per share, compared with $2.15 per share a year earlier.

Reporting by Sriparna Roy in Bengaluru; Editing by Shilpi Majumdar

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