Zoetis (ZTS) came out with quarterly earnings of $1.76 per share, beating the Zacks Consensus Estimate of $1.62 per share. This compares to earnings of $1.56 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of +8.64%. A quarter ago, it was expected that this animal health company would post earnings of $1.4 per share when it actually produced earnings of $1.48, delivering a surprise of +5.71%. What's Next for Zoetis? While Zoeti ...

Financial Performance - Revenue reached $2.46 billion, a 4% increase compared to the previous year[47] - Adjusted Net Income was $783 million, representing a 10% year-over-year increase[47] - Adjusted Diluted EPS increased to $1.76, a 13% rise compared to the previous year[47] - The company is raising its 2025 revenue outlook to $9450 million - $9600 million[23] - The company is raising its 2025 adjusted net income outlook to $2825 million - $2875 million[23] - The company is raising its 2025 adjusted diluted EPS outlook to $630 - $640[23] Segment Performance - U S segment revenue totaled $1.4 billion, with 7% organic operational growth[20] - U S Companion Animal revenue reached $1.2 billion, a 9% year-over-year increase[20] - International segment revenue amounted to $1.1 billion, showing 9% organic operational growth[20] - International Livestock revenue grew by 10% on an organic operational basis[20] Product Performance - The Simparica franchise experienced 17% operational growth, with revenue reaching $448 million[29] - The Key Dermatology franchise grew by 11% operationally, with revenue reaching $460 million[34] - Livestock revenue increased by 6% on an organic operational basis, reaching $631 million (excluding MFA revenue)[44]

EXHIBIT 99.1 Zoetis Announces Second Quarter 2025 Results, Raises Full Year 2025 Outlook PARSIPPANY, N.J. – August 5, 2025 – Zoetis Inc. (NYSE:ZTS) today reported its financial results for the second quarter of 2025 and raised its full year 2025 guidance. The company reported revenue of $2.5 billion for the second quarter of 2025, an increase of 4% compared with the second quarter of 2024. On an organic operational basis, revenue for the second quarter of 2025 increased 8% compared with the second quarter o ...

Core Viewpoint - Zoetis, Inc. (ZTS) is anticipated to exceed expectations in its second-quarter 2025 earnings report, with projected revenues of $2.4 billion and earnings of $1.61 per share [1][5]. Revenue Sources - The company generates most of its revenue from a diverse portfolio of veterinary medicines and vaccines for livestock and companion animals, with additional income from non-pharmaceutical categories such as nutritional products and precision animal health services [2]. Geographical Performance - Revenues from the United States segment are expected to rise, driven by increased sales of companion animal products, with estimates at $1.33 billion [3]. - The International segment is also projected to see revenue growth, with estimates around $1.05 billion, attributed to higher sales of companion animal products [4]. Product Performance - Strong demand for products like Simparica Trio, Librela, and Apoquel is likely to boost sales in the companion animal segment, while livestock product revenues may decline due to divestitures [5][6]. - Key products contributing to growth include monoclonal antibodies for osteoarthritis pain and flea, tick, and heartworm combination products [6]. Regulatory Approvals - The FDA's recent approval of Simparica Trio for preventing flea tapeworm infections is expected to enhance sales further [8]. Historical Performance - Zoetis has a strong earnings surprise history, surpassing estimates in the last four quarters with an average surprise of 5.21% [12]. Earnings Prediction - The company has an Earnings ESP of +0.42%, indicating a likelihood of beating the consensus estimate of $1.61 per share [14].

Core Viewpoint - Wall Street analysts anticipate Zoetis (ZTS) to report quarterly earnings of $1.61 per share, reflecting a year-over-year increase of 3.2%, with revenues expected to reach $2.4 billion, up 1.7% from the previous year [1] Revenue Estimates - Analysts predict 'Revenues- Contract Manufacturing & Human Health' will reach $21.18 million, indicating a year-over-year change of +17.7% [4] - 'Revenues- Livestock' is expected to be $625.62 million, suggesting a decline of -9.9% year over year [4] - 'Revenues- Companion Animal' is projected to reach $1.76 billion, reflecting a year-over-year increase of +6.7% [4] Product Category Revenue Projections - 'Revenues by major product category- Vaccines' is estimated at $451.72 million, indicating a change of +1.5% from the year-ago quarter [5] - 'Revenues by major product category- Parasiticides' is expected to be $638.60 million, reflecting a change of +6.4% from the previous year [5] - 'Revenues by major product category- Medicated feed additives' is projected at $5.00 million, indicating a significant decline of -93.2% from the prior-year quarter [6] Geographic Revenue Estimates - 'Geographic Revenues- U.S.' is forecasted to reach $1.33 billion, indicating a year-over-year change of +1.7% [6] - 'Geographic Revenues- International Revenue' is expected to be $1.05 billion, reflecting a year-over-year change of +1.3% [6] - 'Geographic Revenues- International- Livestock' is projected at $438.42 million, indicating a decline of -5.9% from the prior-year quarter [7] - 'Geographic Revenues- International- Companion Animal' is expected to reach $618.49 million, reflecting a year-over-year increase of +8.7% [7] - 'Geographic Revenues- U.S.- Livestock' is forecasted to be $202.16 million, indicating a decline of -11.3% from the previous year [8] - 'Geographic Revenues- U.S.- Companion Animal' is projected at $1.15 billion, reflecting a year-over-year change of +6.2% [8] Stock Performance - Zoetis shares have decreased by -6.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of +2.7% [8]

Zoetis (ZTS) ended the recent trading session at $148.81, demonstrating a -1.46% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.13%. On the other hand, the Dow registered a loss of 0.39%, and the technology-centric Nasdaq increased by 0.15%. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual ...

Group 1: Investment Activity - Terry Smith, known as the "Warren Buffett of Britain," has completely sold his stake in Apple, which was previously Berkshire Hathaway's top holding [6][8] - Fundsmith's 13F filings indicate that Smith's fund increased its stake in Zoetis by 1,020% in just three months, purchasing 2,319,158 shares [16][17] Group 2: Company Performance - Apple's stock price increased from the $150s to the $220s between Q3 2022 and Q3 2024, prompting profit-taking by Smith [9] - Despite a share buyback program that has repurchased approximately $775 billion worth of stock, Apple's net income fell from $94.7 billion to $93.7 billion from fiscal 2021 to fiscal 2024 [8][12] Group 3: Market Trends - The global animal health market is projected to grow from $67 billion in 2024 to $149 billion by 2032, driven by demand for livestock medicines and companion animal care [18] - Zoetis holds a significant market share in the animal health sector, with over 300 products and 17 therapies generating at least $100 million in annual sales [20] Group 4: Valuation and Growth Potential - Zoetis is trading at less than 22 times the forecast EPS for 2026, representing a 34% discount to its average forward-year earnings multiple over the past five years [22] - The company has been actively acquiring businesses to enhance its product and service ecosystem, ensuring stability despite potential loss of exclusivity on individual drugs [21]

Core Insights - Zoetis is positioned to continue its earnings-beat streak, particularly in the upcoming earnings report, with a history of positive surprises in recent quarters [1][5] - The company reported earnings of $1.48 per share for the last quarter, exceeding the Zacks Consensus Estimate of $1.4 per share by 5.71% [2] - The previous quarter also saw a positive surprise, with actual earnings of $1.4 per share against an expected $1.37 per share, resulting in a 2.19% surprise [2] Earnings Estimates and Predictions - Estimates for Zoetis have been trending higher, supported by its history of earnings surprises [5] - The stock has a positive Zacks Earnings ESP of +1.10%, indicating bullish sentiment among analysts regarding the company's earnings prospects [8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong likelihood of another earnings beat in the upcoming report [8] Earnings ESP and Market Behavior - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7] - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [9]

Company Overview - Zoetis Inc. has emerged as the leading pharmaceutical company in animal health since its spin-off from Pfizer in 2012 [1] - Approximately two-thirds of Zoetis's revenue is derived from its animal health products [1] Investment Insights - The company represents a significant opportunity for investors looking for stable growth in the pharmaceutical sector focused on animal health [1]

Company Overview - JPMorgan upgraded Phibro Animal Health Corporation (PAHC) due to strong execution following its $350 million acquisition of Zoetis' medicated feed additive and water-soluble product portfolio, which includes 37 product lines sold in about 80 countries and six manufacturing sites across the U.S., Italy, and China [1] - The acquisition is expected to enhance Phibro's profitability, improve EBITDA margins, and be accretive to adjusted earnings per share [1] Financial Performance - In Q3 2025, Phibro's sales reached $347.8 million, an increase of $84.6 million, or 32% year over year, although it missed the consensus estimate of $352.40 million [3] - Adjusted earnings for the same period were 63 cents, surpassing the consensus of 52 cents [3] Guidance and Market Outlook - Phibro raised its fiscal 2025 adjusted earnings per share guidance from $1.87-$2.01 to $1.96-$2.09, compared to the consensus of $1.94 [4] - The company revised its sales guidance from $1.25 billion-$1.30 billion to $1.26 billion-$1.29 billion, against a consensus of $1.28 billion [4] - Analyst Knyazkova noted that despite a strong performance in PAHC shares this year, there remains a favorable setup for further upside to estimates and attractive valuation [4] Industry Insights - The animal health performance is expected to exceed expectations for 2025, driven by strong demand, price increases, and healthy growth across medicated feed additives, nutritional specialties, and vaccines for 2026 [2] - While growth in livestock is slower than in companion animals, the livestock sector maintains strong fundamentals, including population growth, rising meat consumption, and limited impact from economic shifts [3]