ZTS Q3 Earnings Beat, Revenues Miss, '25 Sales View Cut, Stock Down

Core Insights - Zoetis, Inc. (ZTS) reported third-quarter 2025 adjusted earnings of $1.70 per share, exceeding the Zacks Consensus Estimate of $1.62, while total revenues grew 1% year over year to $2.4 billion, missing the estimate of $2.41 billion [1][7] Financial Performance - U.S. revenues decreased 2% year over year to $1.32 billion, missing both the Zacks Consensus Estimate of $1.34 billion and the model estimate of $1.38 billion [3][7] - Sales of companion animal products in the U.S. remained flat at $1.07 billion, with growth in parasiticides and dermatology products offset by declines in monoclonal antibody products for osteoarthritis pain [4][7] - Livestock product sales in the U.S. fell 9% to $253 million, primarily due to the divestiture of the medicated feed additive product portfolio [6][9] International Segment - Revenues from the International segment increased 3% year over year to $1.06 billion, surpassing the Zacks Consensus Estimate of $1.04 billion [8] - Ex-U.S. sales of companion animal products rose 8% to $583 million, driven by growth in key products [9] Guidance and Future Outlook - Zoetis has cut its 2025 revenue guidance to $9.4-$9.475 billion from a previous range of $9.45 billion to $9.6 billion, while maintaining adjusted earnings guidance of $6.30-$6.40 per share [10] - The company secured a positive opinion for Lenivia, a long-acting monoclonal antibody therapy for canine osteoarthritis pain, with a final European decision expected in late 2025 [11][13]