IDEXX Laboratories reported solid Q3 2024 performance with a resilient top line and robust profitability metrics, supported by a favorable mix of high-margin diagnostic services and instruments. Revenue reached $975.5 million, up 6.6% year over year, while gross margins remained industry-leading at approximately 61.1%. Operating income of $303.9 million yielded an operating margin of 31.2%, and net income of $232.8 million translated to earnings per share (EPS) of $2.83 (diluted $2.80), underscoring the company's high-margin, cash-generative profile.
The quarter delivered strong cash conversion, with net cash provided by operating activities of $220.1 million and free cash flow of $192.0 million. Despite a $220.8 million annualized share repurchase during the period, IDEXX maintains a solid balance sheet: cash and equivalents of about $308.6 million, total debt of $998.3 million, and net debt of $689.6 million. The company remains well-positioned to fund growth initiatives and capital returns, supported by a cash-rich, asset-light profile and disciplined capital allocation. While management commentary on forward guidance is not included in the provided data, the cadence of QoQ and YoY improvements in profitability, plus strong cash flow, suggests continued resilience in core markets (companion animal diagnostics, reference labs, and water testing) with upside potential from services mix and software-enabled offerings. Investors should monitor clinic demand, practice spending trends, and currency dynamics as catalysts or headwinds going forward.