Fountain Report Excerpts Nov 7, 2023

Fountain Report Excerpts
  1. Idexx reported third quarter revenue of $916 million, up 9% reported and 8% organic. Revenue was driven by companion animal group growth of 9% reported and 8% organic and water revenue growth of 9% reported and 7% organic. Third quarter earnings per diluted share were $2.53, up 18% reported and 16% on a comparable basis. The company cut its annual sales forecast after missing third quarter estimates, hurt by a slower-than-expected rise in pet owners’ visits to veterinary clinics, Reuters reports. The company also said annual revenue would be hurt by a stronger dollar. Idexx now expects annual revenue to be between $3.64 billion and $3.65 billion, compared with its previous forecast range of $3.66 billion to $3.72 billion.
  1. Vetoquinol reported third quarter sales of 136 million euros, up 1.3% on a reported basis and up 5.1% at constant exchange rates. Sales of essential products were 81 million euros, up 9% on a reported basis and up 12.2% at constant exchange rates. This performance was driven by the development of the existing portfolio and the ongoing launch in Europe of Felpreva, an antiparasitic for cats, and, in the United States, the launch of Simplera, a drug indicated for the treatment of otitis in dogs. Sales of essential products accounted for 60% of Vetoquinol’s sales in the third quarter, compared with 56% last year. At the end of September, the company’s sales totaled 392 million euros, down 3.2% on a reported basis and 1.4% at constant exchange rates.
  1. The latest Cattle on Feed Report suggests a slight increase in feedlot inventory from last year. Placements of cattle on feed were up about 6%, driven by higher 700-900-pound placements. The quarterly breakdown of steers versus heifers on feed suggests 40% of feedlot inventories were heifers. This is the highest percentage in over 20 years and indicates that producers continue to send many heifers to feed instead of retaining for reproduction. There are two takeaways: Heifers are helping to boost inventories now, which could be viewed somewhat negatively for prices in the short term; at the same time, fewer heifers retained means a smaller calf crop next year, which can be viewed as supporting high price levels in the longer term, Mississippi State University economist Josh Maples writes in Southern Ag Today.

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