IDEXX Laboratories, Inc. Puts Long-Term Profits Ahead of Short-Term Revenue

IDEXX Laboratories, Inc. Puts Long-Term Profits Ahead of Short-Term Revenue

On the surface, IDEXX Laboratories's (NASDAQ: IDXX) third quarter wasn't the kind of outstanding report we've come to expect from the animal-testing company, which narrowed its revenue guidance for the year. But dig a little deeper, and the revenue issues weren't that big of a deal.

The hurricanes hurt sales a little. And less testing of cattle is hurting the company's farm-animal testing business, although that's a relatively small fraction of sales. Finally, IDEXX increased the use of programs that result in placements of its instruments, but don't necessarily translate to immediate revenue recognition in the quarter in which they're placed -- which hurts short-term revenue, but should benefit long-term profits.

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Source: Fool.com