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Why Zoetis Stock Was Falling Today
ZTSZoetis(ZTS) The Motley Fool·2025-02-13 17:24

Core Viewpoint - Zoetis' shares declined by 6.5% following its fourth-quarter results and 2025 guidance, which fell short of investor expectations despite solid performance in Q4 [1][4]. Financial Performance - Q4 revenue increased by 5% to 2.32billion,surpassingtheconsensusestimateof2.32 billion, surpassing the consensus estimate of 2.3 billion, with organic operational growth at 9% [2][3]. - U.S. revenue grew by 4%, while international revenue rose by 6%, with the pet segment showing strength, although livestock product sales decreased by 3% to 726million[3].−Grossmarginimprovedto69.5726 million [3]. - Gross margin improved to 69.5% from 67.1%, indicating better cost control, and adjusted earnings per share (EPS) increased by 13% to 1.40, exceeding estimates of 1.34[3].FutureGuidance−Thecompanyprojectedorganicoperationalrevenuegrowthof61.34 [3]. Future Guidance - The company projected organic operational revenue growth of 6% to 8% for 2025, translating to 9.225 billion to 9.375billion,whichisbelowtheconsensusestimateof9.375 billion, which is below the consensus estimate of 9.57 billion [4]. - Adjusted EPS guidance for 2025 is set at 6to6 to 6.10, a slight increase from 5.92in2024,butbelowtheexpected5.92 in 2024, but below the expected 6.30 [5].