Shares IDEXX Laboratories, Inc. (NASDAQ:IDXX), the leading provider of testing and diagnostics to veterinarians, gained after the company reported healthy financial results. We believe that IDEXX’s business trends are improving and that its competitive position is becoming increasingly unassailable. The company’s placements of new diagnostic instruments in veterinary hospitals grew by almost 50% in its recent quarter. We expect this to be a key driver of future growth because these instruments require the ongoing purchase of high-margin consumables to perform in-clinic tests. In addition, the company’s network of domestic testing laboratories grew at more than twice the rate of its main competitor. We also observed rising productivity of its field salesforce, and a rebound in its rapid assay products. We believe that these trends, coupled with a number of new tests that should emerge from its meaningful research and development effort, will drive increased organic revenue and earnings growth during the next few years.
From Baron Asset Funds' first quarter 2016 commentary.
