IDEXX Laboratories, Inc. (NASDAQ:IDXX) Q4 2023 Earnings Conference Call February 5, 2024 8:30 AM ET
Company Participants
Brian McKeon - Executive Vice President, Chief Financial Officer
Jay Mazelsky - President and Chief Executive Officer
Conference Call Participants
Chris Schott - JPMorgan
Nathan Rich - Goldman Sachs
Michael Ryskin - Bank of America
Erin Wright - Morgan Stanley
Jonathan Block - Stifel Financial
Operator
Good morning and welcome to the IDEXX Laboratories Fourth Quarter 2023 Earnings Conference Call. As a reminder, today's conference is being recorded. Participating in the call this morning are Jay Mazelsky, President and Chief Executive Officer; Brian McKeon, Chief Financial Officer; and John Ravis, Vice President, Investor Relations.
IDEXX would like to preface the discussion today with a caution regarding forward-looking statements. Listeners are reminded that our discussion during the call will include forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those discussed today.
Additional information regarding these risks and uncertainties is available under the forward-looking statements noticed in our press release issued this morning, as well as in our periodic filings with the Securities and Exchange Commission, which can be obtained from the SEC or by visiting the Investor Relations section of our website, idexx.com.
During this call, we will be discussing certain financial measures, not prepared in accordance with Generally Accepted Accounting Principles or GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable measures is provided in our earnings release, which may also be found by visiting the Investor Relations section of our website.
In reviewing our fourth quarter 2023 results and initial 2024 guidance, please note all references to growth, organic growth and comparable growth refer to growth compared to the equivalent prior year period unless otherwise noted.
[Operator Instructions] Today's prepared remarks will be posted to idexx.com investors after the earnings conference call concludes.
I would now like to turn the call over to Brian McKeon.
Brian McKeon
Good morning, everyone. I'm pleased to take you through our fourth quarter and full year 2023 results and to provide an overview of our financial outlook for 2024.
IDEXX had a strong finish to 2023, reflected in our fourth quarter performance. Revenues increased 8% organically, supported by 10% organic gains in CAG Diagnostic recurring revenues, net of a 1% growth headwind from fewer equivalent selling days.
Operating profits increased 8% as reported and 10% on a comparable basis, benefiting from solid gross margin gains and OpEx leverage. These factors and a lower-than-expected effective tax rate supported delivery of $2.32 per share in EPS in Q4, up 17% on a comparable basis.