IDEXX Laboratories, Inc. (NASDAQ:IDXX) stock rose 0.63% (As on February 7, 11:15:08 AM UTC-4, Source: Google Finance) after the company beats the earnings estimates for the fourth quarter of FY 22. Fourth quarter results reflected solid organic revenue gains across IDEXX’s CAG, Water and LPD business segments. CAG Diagnostics recurring revenue gains of 4% reported and 8% organic in the quarter were supported by continued benefits from IDEXX execution drivers including new business gains, high quality placements of CAG Diagnostics capital instruments across regions, high customer retention and net price realization. CAG revenue gains also reflect veterinary software, services and diagnostic imaging systems revenue growth of 15% as reported and 17% organically, supported by software solution placement growth and a continued shift to cloud-based products.

IDXX in the fourth quarter of FY 22 has reported the adjusted earnings per share of $2.05, beating the analysts’ estimates for the adjusted earnings per share of $1.94, according to figures compiled by Thomson Reuters. The company had reported the adjusted revenue growth of 3.4 percent to $828.57 million in the fourth quarter of FY 22, from $801.09 million last year. There is 7% on an organic basis growth.

Moreover, the Companion Animal Group generated 4% reported and 8% organic revenue growth for the fourth quarter. CAG Diagnostics organic recurring revenue growth of 8% reflects solid gains across IDEXX’s major modalities globally, supported by growth in clinical service demand and expanded utilization of diagnostic products and services. Veterinary software, services and diagnostic imaging systems revenue growth increased 15% on a reported basis and 17% organically, supported by double-digit growth in subscription-based service revenues and strong growth in new veterinary software system placements. Water achieved revenue growth of 6% on a reported basis and 10% on an organic basis, reflecting benefits from net price improvement and volume gains for compliance and non-compliance testing.

Gross profits increased 6%, and gross margins of 59% increased 150 basis points compared to prior year results on a reported basis and 110 basis points on a comparable basis. Gross margin results reflect benefits from net price gains, higher software service margins, lab productivity gains and comparisons to higher prior year initiative investment levels, and business mix, all of which offset inflationary cost effects.  Operating margin was 27.3% in the quarter, 240 basis points higher than the prior year period results on a reported basis and 220 basis points on a comparable basis. Operating expenses were flat on a reported basis and increased 4% on a comparable basis.