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

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(Reuters) – Animal health diagnostic services provider IDEXX Laboratories cut its annual sales forecast, after missing third-quarter revenue estimates on Wednesday, hurt by a slower-than-expected rise in pet owners’ visits to vet clinics.

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

Online pet products retailer Chewy and pet health and wellness company Petco have also flagged that a shift in consumer spending was pressuring demand for their pet products.

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

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

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

Sales at IDEXX’s companion animal 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 annual profit of $9.74-$9.90 per share, compared with its prior projection of $9.64-$9.90 per share.

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

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

(Reporting by Sriparna Roy in Bengaluru; Editing by Shilpi Majumdar)