Zoetis(ZTS) The Motley Fool·2025-02-13 17:24Core 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 $2.32 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 $726 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]. Future Guidance - The company projected organic operational revenue growth of 6% to 8% for 2025, translating to $9.225 billion to $9.375 billion, which is below the consensus estimate of $9.57 billion [4]. - Adjusted EPS guidance for 2025 is set at $6 to $6.10, a slight increase from $5.92 in 2024, but below the expected $6.30 [5].