What caused IDXX's earnings to dip in Q2 2024?

IDEXX Laboratories' diluted EPS dipped to $2.44 in Q2 2024 compared to the previous year's $2.53, and this can be attributed to several factors: 1. **Macroeconomic Conditions and Currency Issues**: IDEXX's IDXX business has been affected by complex macroeconomic conditions and unfavorable currency movement. The company has faced challenges such as supply chain disruptions, increases in the unit cost of raw materials, shortages of healthcare staff, and fluctuations in foreign currency exchange rates. These macroeconomic pressures have impacted the company's financial performance. 2. **Geopolitical Instability**: The current geopolitical instability, including the war in Ukraine, has affected IDEXX's supply chain operations globally, leading to further disruptions and increased costs. This has created additional challenges for the company to navigate. 3. **Strengthening of the U.S. Dollar**: IDEXX has approximately 21% of its total revenues from products manufactured or sourced in the U.S. and sold internationally. The strengthening of the U.S. dollar relative to other currencies has had a negative impact on the company's revenues derived in currencies other than the U.S. dollar and on profits from products manufactured in the United States and sold internationally. In 2023, foreign exchange reduced operating profits by $25 million and EPS by 24 cents per share. During the first quarter of 2024, it had a limited impact on gross margin, operating profit, and EPS. IDEXX’s updated 2024 revenue forecast includes a $35 million negative impact from the strengthening of the U.S. dollar. In summary, IDXX's earnings dip in Q2 2024 was caused by a combination of macroeconomic conditions, currency issues, geopolitical instability, and the impact of the strengthening of the U.S. dollar on its international revenues. |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |IDXX|IDXX.O|IDEXX Laboratories|2023 Q3|17.67441860465116|2.53|185| |IDXX|IDXX.O|IDEXX Laboratories|2023 Q4||2.32|185| |IDXX|IDXX.O|IDEXX Laboratories|2024 Q1|10.196078431372559|2.81|185| |IDXX|IDXX.O|IDEXX Laboratories|2024 Q2|-8.614232209737828|2.44|185|