Why did IDXX's Q4 2024 earnings surprise analysts?

IDXX's Q4 2024 earnings exceeded analysts' expectations due to several key factors:

1. **Strong Revenue Growth**: IDEXX reported a 9% increase in fourth quarter revenue, reaching $954.29 million, surpassing the estimated $934.99 million. This growth was driven by a 6% organic revenue increase overall, with a significant 7% growth in Companion Animal Group (CAG) Diagnostic recurring revenues. The full-year revenue also saw a 9% increase, reaching $3,661 million.
2. **Earnings Per Share (EPS) Increase**: The EPS for the quarter was $2.53, which represents a 10% year-over-year increase. This exceeded the estimated EPS of $2.40. The full-year EPS grew by 25% to $10.06, marking a robust performance.
3. **Gross Margin Expansion**: IDEXX's gross margin expanded by 140 basis points to 59.8%, reflecting improved profitability and operational efficiency.
4. **International Growth**: The company's international CAG Diagnostic recurring revenue grew by 12% in Q4, supported by net price gains and improved volume growth. This international growth contributed to the overall revenue outperformance.
5. **Strategic Initiatives**: IDEXX's successful launch of new products, such as the IDEXX inVue Dx, a new cellular analyzer, with nearly 1,600 preorders globally by the end of Q4, indicates strong market acceptance and potential for future growth.

In summary, IDEXX's Q4 2024 earnings surprise can be attributed to strong revenue growth, increased EPS, gross margin expansion, international growth, and strategic initiatives. These factors combined to deliver robust financial results that exceeded analysts' expectations.