(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)
