Zoetis Stock Down Despite Q4 Earnings & Revenues Beat Estimates

Core Viewpoint - Zoetis, Inc. reported strong fourth-quarter 2024 results with adjusted earnings of $1.40 per share, exceeding estimates, and total revenues of $2.32 billion, also surpassing expectations [1][2]. Financial Performance - Adjusted earnings for Q4 2024 were $1.40 per share, up from $1.24 in the same quarter last year [1]. - Total revenues increased by 5% year over year to $2.32 billion, compared to $2.21 billion in the prior year [2]. - For the full year 2024, adjusted earnings were $5.92 per share, up from $5.32, with total revenues growing 8% to $9.26 billion [10]. Segment Performance - U.S. segment revenues rose 4% year over year to $1.257 billion, but fell short of estimates [4]. - Companion animal product sales in the U.S. increased by 7% to $1.01 billion, driven by key products like Librela and Solensia [5]. - Livestock product sales in the U.S. decreased by 8% to $249 million, primarily due to divestitures [6]. - International segment revenues grew by 6% year over year to $1.039 billion, exceeding estimates [7]. - Companion animal product sales internationally rose by 11% to $562 million, supported by growth in several key products [8]. - Livestock product sales internationally were flat year over year but grew 6% operationally to $477 million [9]. Future Guidance - For 2025, Zoetis expects adjusted earnings in the range of $6.00 to $6.10 per share, with projected revenues between $9.225 billion and $9.375 billion, indicating operational growth of 2-4% [11][12].