Zoetis Inc (NYSE:ZTS, ETR:ZOE) lifted its full-year guidance as the animal health company continued its strong start to the year into the third quarter, with revenue and earnings exceeding Wall Street estimates.
The maker of medicines for companion animals and livestock reported revenues of $2.39 billion for the three months ended September 30, 2024, marking an 11% increase year-over-year from $2.15 billion, and surpassing analyst expectations of $2.29 billion.
Earnings per share (EPS) also showed significant growth, rising to $1.50 compared to $1.29 in the same quarter last year, representing a 16% increase and beating the consensus EPS estimate of $1.37.
Zoetis' net income for the quarter was $682 million, up 14% from the previous year. The company's operating margin improved to 36.6%, up from 33.3% in Q3 2023.
“Building on the strong momentum from the first half of the year, we are proud to have delivered another excellent quarter, fueled by our diverse, durable, and science-driven portfolio and our customer obsession that underscore our market leadership,” CEO Kristin Peck said.
Peck noted a 15% revenue growth in the US and a 13% operational revenue growth internationally.
The US market was a significant contributor, with revenue reaching $1.35 billion. International revenues totaled $1.02 billion, a 7% increase year-over-year, which translates to a 13% operational growth.
The companion animal segment continued to drive strong performance, generating $1.61 billion in revenue, up 14% year-over-year. The livestock segment also performed well, with revenues of $758 million, representing a 6% increase.
Following its strong quarterly performance, Zoetis raised its full-year guidance. The company now expects revenue to be between $9.20 billion and $9.30 billion, up from the previous estimate of $9.10 billion to $9.25 billion. Additionally, Zoetis expects adjusted EPS to be in the range of $5.86 to $5.92, an increase from the prior estimate of $5.78 to $5.88.
Despite trading higher premarket, Zoetis shares were down around 3.7% in morning trade Monday.