IDEXX Laboratories Inc. reported fourth-quarter 2016 net income attributable to stockholders of $52.4 million, or 58 cents per share, compared with $44.3 million, or 48 cents per share, in the fourth quarter of 2015.
The S&P Capital IQ normalized EPS consensus estimate for the quarter was 51 cents.
Revenue for the period was about $443.0 million, up from $399.7 million in the year-ago period.
IDEXX results for the quarter were supported by accelerated gains in Companion Animal Group Diagnostics recurring revenue and continued high growth in premium instrument placements. The group reported revenue of $379.5 million, versus $336.1 million in the prior-year period.
Net income attributable to stockholders for the full year 2016 was $222.1 million, or $2.44 per share, compared with $192.1 million, or $2.05 per share, in 2015. The S&P Capital IQ normalized EPS consensus estimate for 2016 was $2.38.
The company maintained its 2017 revenue outlook of $1.91 billion to $1.94 billion. It estimates that the effect of the stronger U.S. dollar will adversely impact 2017 reported revenue growth by about 1.5%, EPS growth by 2% to 3% and EPS by an estimated 6 cents per share, including the net impact from projected hedge gains of about $7 million in 2017, compared with $4 million in 2016 hedge gains.
IDEXX raised its 2017 EPS outlook to a range of $2.85 to $3.01, reflecting targeted growth of 17% to 23% on a reported basis and 19% to 26% EPS constant currency growth. Improvements to employee share-based payment accounting are expected to result in 12 cents to 16 cents of EPS benefit in 2017.
The S&P Capital IQ normalized EPS consensus estimate for 2017 is $2.89.
IDEXX is projecting free cash flow at about 95% of net income in 2017, reflecting continued discipline in inventory management and capital spending.