(Reuters) -IDEXX Laboratories raised its full-year profit and revenue forecasts on Monday after reporting better third-quarter results than last year, as the pet diagnostics maker banks on owners spending more on preventive testing and care.
Its shares rose 5% in premarket trading.
U.S. vet clinic foot traffic has slowed through the summer, but pet owners kept up spending on veterinary and other services, with growth picking up in the most recent month, according to Jefferies analysts.
The company offers diagnostic equipment such as blood and urine analyzers and imaging systems to help vets diagnose and treat animals. It also provides veterinary software and runs reference laboratories for more complex testing.
Demand for IDEXX’s animal diagnostic equipment remained brisk during the quarter as pet owners invested more to keep animals healthy and safeguard them from diseases.
Jefferies said earlier this month that it believes owners are directing more of their budgets to pet health as pandemic-era pets age and awareness of new treatments grows.
Analysts are watching if IDEXX’s equipment usage picks up, along with the placement of new instruments and overseas progress, ahead of 2026.
The company now forecasts annual profit between $12.81 and $13.01 per share, compared with its previous expectation of $12.40 to $12.76 per share.
Revenue is expected to be in the $4.27 billion to $4.3 billion range compared to $4.21 billion to $4.28 billion previously.
Westbrook, Maine-based IDEXX’s total revenue grew 13% to $1.11 billion for the reported quarter, compared with analysts’ estimate of $1.07 billion, according to data compiled by LSEG.
The company reported profit of $3.40 per share for the quarter ended September 30, compared to $2.80 per share the previous year.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Pooja Desai)
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