I upgraded Zoetis (NYSE: ZTS ) to a 'Buy' rating in August 2024, highlighting the company's direct-to-customer strategy and investment in new products. Zoetis delivered a strong growth in Q3 FY24, with 14% year-over-year growth in both revenue and adjusted net income. Notably, their companion animalMore than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specia ...

Financial Performance - Total revenue for the three months ended September 30, 2024, increased by $237 million, or 11%, compared to the same period in 2023, with operational growth of 14%[78] - Net income attributable to Zoetis for the three months ended September 30, 2024, was $682 million, a 14% increase from $596 million in the same period of 2023[69] - For the nine months ended September 30, 2024, total revenue increased by $608 million, or 10%, with operational growth of 12% compared to the same period in 2023[70] - Adjusted net income for the nine months ended September 30, 2024, was $2,061 million, reflecting a 9% increase from $1,888 million in the same period of 2023[70] - Total revenue for the company reached $2,388 million in Q3 2024, an 11% increase from $2,151 million in Q3 2023[99] - Total earnings for the company increased by 22% to $874 million in Q3 2024, up from $717 million in Q3 2023[102] - GAAP reported net income attributable to Zoetis for the nine months ended September 30, 2024, was $1.905 billion, a 5% increase from $1.819 billion in the prior year[115] - Diluted earnings per share (EPS) for the nine months ended September 30, 2024, was $4.18, a 6% increase from $3.93 in the prior year[116] Revenue Growth Drivers - Price growth contributed approximately 7% to operational revenue growth for the nine months ended September 30, 2024[78] - U.S. segment revenue increased by $172 million, or 15%, to $1,346 million in Q3 2024, driven by an $160 million increase in companion animal products and a $12 million increase in livestock products[100] - International segment revenue rose by $65 million, or 7%, to $1,021 million in Q3 2024, with operational revenue growth of $125 million, or 13%[100] - Companion animal revenue in the U.S. grew primarily due to sales of mAb products for osteoarthritis pain, including Librela and Solensia, as well as key dermatology products[103] - Livestock revenue growth in the U.S. was attributed to increased sales of cattle and swine products, benefiting from supply availability compared to the prior year[103] - U.S. segment revenue increased by $473 million, or 14%, to $3.8 billion for the nine months ended September 30, 2024, driven by companion animal products growth[105] - International segment revenue rose by $134 million, or 5%, to $2.8 billion for the nine months ended September 30, 2024, with operational revenue growth of $305 million, or 10%[106] Expenses and Costs - Selling, general and administrative (SG&A) expenses increased by $40 million, or 8%, to $565 million for the three months ended September 30, 2024, compared to $525 million in 2023[83] - Research and development expenses for the three months ended September 30, 2024, were $167 million, a 10% increase from $152 million in the same period of 2023[79] - R&D expenses for the nine months ended September 30, 2024, increased by $60 million, or 14%, totaling $500 million compared to $440 million in 2023[86] - SG&A expenses for the nine months ended September 30, 2024, rose by $107 million, or 7%, to $1,693 million from $1,586 million in 2023[83] - The provision for taxes on income increased to $182 million for the three months ended September 30, 2024, compared to $121 million in 2023, with an effective tax rate of 20.8%[96] - The effective tax rate for the three months ended September 30, 2024, was 20.8%, compared to 16.9% in the same period of 2023[79] Cash Flow and Financial Position - The net cash provided by operating activities for the nine months ended September 30, 2024, was $2,048 million, an increase of $592 million compared to $1,456 million in 2023[125] - The net decrease in cash and cash equivalents for the nine months ended September 30, 2024, was $327 million, a significant improvement from a decrease of $1,827 million in 2023[125] - Cash and cash equivalents as of September 30, 2024, were $1,714 million, a decrease from $2,041 million as of December 31, 2023[130] - Accounts receivable increased to $1,411 million as of September 30, 2024, from $1,304 million at the end of 2023[130] - The ratio of current assets to current liabilities improved to 3.69:1 as of September 30, 2024, compared to 3.36:1 at the end of 2023[130] Risk Factors - The company is subject to various risks including legal proceedings, economic conditions, and competition from generic products[138] - Future performance is uncertain and may be affected by factors such as product launch delays and regulatory changes[138] - The company emphasizes the importance of protecting intellectual property rights amid potential legal disputes[138] - Risks related to climate change and natural disasters could impact the company's operations and supply chain[138] - The company acknowledges the potential for cyberattacks and data breaches as a significant risk[138] Strategic Outlook - The company anticipates continued growth driven by new product launches and expansion into emerging markets such as Brazil, China, and Mexico[68] - There is a focus on the integration of acquired businesses and the successful commercialization of new products[138]

Zoetis, Inc. (ZTS) delivered third-quarter 2024 adjusted earnings (excluding one-time items) of $1.58 per share, which surpassed the Zacks Consensus Estimate of $1.46 per share. In the year-ago quarter, the company delivered adjusted earnings of $1.36 per share. Total revenues grew 11% year over year to $2.39 billion in the reported quarter, which beat the Zacks Consensus Estimate of $2.29 billion. In the year-ago quarter, the company reported total revenues of $2.15 billion. Shares of Zoetis are gaining in ...

Zoetis Inc. (NYSE:ZTS) Q3 2024 Earnings Conference Call November 4, 2024 8:30 AM ET Company Participants Steve Frank - VP of IR Kristin Peck - CEO Wetteny Joseph - CFO Conference Call Participants Erin Wright - Morgan Stanley Michael Ryskin - Bank of America Brandon Vazquez - William Blair Jon Block - Stifel David Westenberg - Piper Sandler Balaji Prasad - Barclays Glen Santangelo - Jefferies Chris Schott - JPMorgan Chris LoBianco - TD Cowen Navann Ty - BNP Paribas Operator Welcome to the Third Quarter 2024 ...

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| --- | --- | --- | --- | --- | --- | --- | --- | |----------|-----------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Third | | | | | | | | | | Quarter | | | | | | | | 2024 | Financial | | | | | | | | November | 4, 2024 Results | | | | | | | | | | | | | | | | Forward-Looking Statements This presentation contains forward-looking statements, which reflect the current views of Zoetis with respect to: business plans or prospect ...

Zoetis (ZTS) came out with quarterly earnings of $1.58 per share, beating the Zacks Consensus Estimate of $1.46 per share. This compares to earnings of $1.36 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 8.22%. A quarter ago, it was expected that this animal health company would post earnings of $1.49 per share when it actually produced earnings of $1.56, delivering a surprise of 4.70%. Over the last four quarters, the compa ...

EXHIBIT 99.1 Zoetis Announces Third Quarter 2024 Results • Reports Revenue of $2.4 Billion, Growing 11%, and Net Income of $682 Million, or $1.50 per Diluted Share, Increasing 14% and 16%, Respectively, on a Reported Basis for Third Quarter 2024 • Delivers 14% Operational Growth in Revenue and 15% Operational Growth in Adjusted Net Income for Third Quarter 2024 • Reports Adjusted Net Income of $716 Million, or Adjusted Diluted EPS of $1.58, for Third Quarter 2024 • Raises Full Year 2024 Revenue Guidance to ...

Wall Street analysts forecast that Zoetis (ZTS) will report quarterly earnings of $1.46 per share in its upcoming release, pointing to a year-over-year increase of 7.4%. It is anticipated that revenues will amount to $2.29 billion, exhibiting an increase of 6.3% compared to the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estima ...

Core Viewpoint - Zoetis, Inc. is anticipated to exceed revenue and earnings estimates for Q3 2024, with revenues expected at $2.29 billion and earnings at $1.46 per share, as reported on November 4 [1][10]. Revenue Breakdown - The company generates most of its revenue from a diverse portfolio of veterinary medicines and vaccines for livestock and companion animals, with additional revenue from non-pharmaceutical categories like nutritional products and precision animal health services [2]. - In the United States segment, revenues are projected to rise to $1.27 billion, driven by increased sales of companion animal products, while the model estimate is slightly lower at $1.24 billion [3]. - The International segment is also expected to see revenue growth, estimated at $996.4 million, with the model estimate at $1.02 billion, primarily due to higher sales of companion animal products [4]. Product Performance - Sales of companion animal products, particularly monoclonal antibodies for osteoarthritis pain (Librela for dogs and Solensia for cats) and the Simparica Trio flea, tick, and heartworm product, are expected to significantly contribute to revenue growth in both segments [4][5]. - Key dermatology products like Apoquel and Cytopoint are also anticipated to support growth in these segments [5]. - The FDA's approval of Apoquel Chewable tablets for allergic dermatitis in dogs is expected to boost sales in the upcoming quarter [6]. Livestock Products - Livestock product sales in the United States are likely to increase, driven by higher sales of cattle and swine products, while the International segment is expected to see growth in cattle and poultry portfolios due to price increases [7]. Earnings Surprise History - Zoetis has a positive earnings surprise history, surpassing estimates in three of the last four quarters, with an average surprise of 0.42% [8]. Earnings Prediction - The company has an Earnings ESP of +0.69%, indicating a likelihood of an earnings beat, with the most accurate estimate at $1.47 per share [10].