IDEXX Laboratories Announces Increase in Share Repurchase Program Authorization

Rhea-AI Summary

IDEXX Laboratories (NASDAQ: IDXX) has announced an expansion of its share repurchase program. The company's Board of Directors has authorized the repurchase of 5 million additional shares of common stock, supplementing the existing 1.3 million shares remaining under previous authorizations as of December 3, 2024.

The repurchases can be executed through open market operations, including Rule 10b5-1 plans, or through negotiated transactions at management's discretion. The program has no specified end date and can be suspended or discontinued at any time.

Positive

• Authorization of 5 million additional shares for repurchase program
• 1.3 million shares still remaining from previous authorization
• Flexible implementation with no specified expiration date

Negative

• Potential reduction in cash reserves available for other investments
• No guaranteed timeline or commitment for share repurchases

Insights

Financial Analyst

This significant share repurchase authorization of 5 million additional shares on top of the existing 1.3 million shares signals strong confidence from IDEXX's management in the company's future prospects and financial health. With IDEXX's current market cap of $35.2 billion, this new authorization represents a substantial commitment to returning capital to shareholders. Share buybacks typically support stock price by reducing the number of outstanding shares and increasing earnings per share. The open-ended nature of the program, combined with the flexibility in execution through both open market and negotiated transactions, gives management strategic optionality in timing the repurchases to maximize value. The inclusion of Rule 10b5-1 plans suggests a structured approach to buybacks, which can help minimize market impact and ensure regulatory compliance.

Market Research Analyst

The veterinary diagnostics market where IDEXX operates continues to show resilience, supported by growing pet ownership and increased spending on pet healthcare. This buyback expansion reflects management's view that the stock may be undervalued relative to the company's growth potential. The timing is strategic, as the pet healthcare sector has shown strong fundamentals despite broader market volatility. With 6.3 million total shares now authorized for repurchase, IDEXX is positioning itself to take advantage of any market opportunities while maintaining operational flexibility. The absence of a specified expiration date indicates a long-term commitment to capital return, which should provide ongoing support for shareholder value.

WESTBROOK, Maine--(BUSINESS WIRE)-- IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today announced that the Company’s Board of Directors authorized an increase in its ongoing share repurchase program, authorizing the repurchase of up to five million additional shares of the Company’s common stock. Repurchases may be made at management’s discretion from time to time in the open market (including through Rule 10b5-1 plans) or in negotiated transactions. These shares are in addition to the 1.3 million shares remaining under the Company’s ongoing share repurchase program as of December 3, 2024, pursuant to previous Board authorizations. The share repurchase program has no specified expiration date and may be suspended or discontinued at any time.

About IDEXX Laboratories, Inc.

IDEXX is a global leader in pet healthcare innovation. Our diagnostic and software products and services create clarity in the complex, constantly evolving world of veterinary medicine. We support longer, fuller lives for pets by delivering insights and solutions that help the veterinary community around the world make confident decisions—to advance medical care, improve efficiency, and build thriving practices. Our innovations also help ensure the safety of milk and water across the world and maintain the health and well-being of people and livestock. IDEXX Laboratories, Inc. is a member of the S&P 500^® Index. Headquartered in Maine, IDEXX employs approximately 11,000 people and offers solutions and products to customers in more than 175 countries and territories. For more information about IDEXX, visit www.idexx.com.

Note Regarding Forward-Looking Statements

This news release contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the Company’s business prospects and estimates of the Company’s financial results for future periods. Forward-looking statements can be identified by the use of words such as “expects,” “may,” “anticipates,” “intends,” “would,” “will,” “plans,” “believes,” “estimates,” “should,” “project,” and similar words and expressions. These forward-looking statements are intended to provide our current expectations or forecasts of future events; are based on current estimates, projections, beliefs, and assumptions; and are not guarantees of future performance. Actual events or results may differ materially from those described in the forward-looking statements. These statements are subject to risks, uncertainties, assumptions, and other important factors. Readers are cautioned not to put undue reliance on such forward-looking statements because actual results may vary materially from those expressed or implied. The reports filed by IDEXX pursuant to United States securities laws contain discussions of some of these risks and uncertainties. IDEXX assumes no obligation to, and expressly disclaims any obligation to, update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are advised to review IDEXX’s filings with the United States Securities and Exchange Commission (which are available from the SEC’s EDGAR database at sec.gov and via IDEXX’s website at idexx.com).

View source version on businesswire.com: https://www.businesswire.com/news/home/20241208581314/en/

Investor Relations

investorrelations@idexx.com

Source: IDEXX Laboratories, Inc.

FAQ

How many additional shares did IDEXX (IDXX) authorize for repurchase in its latest program?

IDEXX authorized the repurchase of 5 million additional shares of common stock in its latest program expansion.

How many shares remain from IDEXX's (IDXX) previous share repurchase authorization?

As of December 3, 2024, 1.3 million shares remain from IDEXX's previous share repurchase authorization.

What methods can IDEXX (IDXX) use to repurchase shares under this program?

IDEXX can repurchase shares through open market operations (including Rule 10b5-1 plans) or through negotiated transactions.

Does IDEXX's (IDXX) share repurchase program have an expiration date?

No, the share repurchase program has no specified expiration date and can be suspended or discontinued at any time.