Zoetis Earnings Top Analysts' Forecasts

Core Insights - Zoetis exceeded market expectations in Q4 2024, reporting an adjusted EPS of $1.40, surpassing the consensus estimate of $1.36, reflecting a 12.9% increase year-over-year [2][4] - The company's revenue reached $2.3 billion, slightly above the estimated $2.299 billion, marking a 5% year-over-year growth [2][4] - The strong performance was driven by the companion animal segment, which saw an 8% revenue increase, while the livestock segment faced a 3% decline [7] Financial Performance - Adjusted EPS for Q4 2024 was $1.40, compared to $1.24 in Q4 2023, indicating a 12.9% increase [4] - Revenue for Q4 2024 was $2.317 billion, up from $2.213 billion in Q4 2023, reflecting a 5.0% year-over-year growth [4] - Net income for the quarter was $581 million, up 10.7% from $525 million in Q4 2023 [4] - U.S. revenue reached $1.3 billion, a 4.0% increase from $1.2 billion in Q4 2023 [4] Business Overview - Zoetis is a global leader in animal health, providing products and services for both companion animals and livestock, operating in over 100 countries [5] - The company focuses on diversifying its product offerings and emphasizes research and development to drive innovation [6] Segment Performance - The companion animal segment showed significant growth, driven by products like Simparica Trio, Apoquel, Librela, and Solensia [7] - The livestock segment experienced a revenue decline of 3%, partly due to strategic divestitures [7] - International markets contributed to a 10% operational growth, with Europe and Asia being key regions [8] Research and Development - Zoetis invested $684 million in R&D for the year, focusing on innovative solutions in pain management [9] - The company faced regulatory challenges in markets like China and Brazil, which are crucial for its global strategy [9] Strategic Outlook - For 2025, Zoetis projects revenue growth between $9.225 billion and $9.375 billion, with organic growth anticipated at 6% to 8% [11] - The forecasted EPS is between $5.70 and $5.80, with adjusted EPS expected at $6.00 to $6.10 [11] - Management's guidance indicates a focus on continued investment in R&D and strategic global expansions [12]