Core Insights - Zoetis, Inc. (ZTS) reported second-quarter 2025 adjusted earnings of $1.76 per share, exceeding the Zacks Consensus Estimate of $1.62 and up from $1.56 in the same quarter last year [1] - Total revenues for the quarter reached $2.46 billion, a 4% year-over-year increase, surpassing the Zacks Consensus Estimate of $2.40 billion and the previous year's revenue of $2.36 billion [1] Revenue Breakdown - The U.S. segment revenues increased by 4% year over year to $1.36 billion, beating both the Zacks Consensus Estimate of $1.33 billion and the model estimate of $1.31 billion [2] - Sales of companion animal products in the U.S. rose by 9% to $1.18 billion, driven by products like Simparica Trio and key dermatology items, although this was partially offset by a decline in monoclonal antibody sales for osteoarthritis pain [3] - International segment revenues grew by 3% year over year to $1.07 billion, exceeding the Zacks Consensus Estimate of $1.05 billion [7] - Ex-U.S. sales of companion animal products increased by 8% to $612 million, supported by growth in various key products [8] - Livestock product sales in the U.S. decreased by 21% to $180 million, primarily due to the divestiture of the medicated feed additive product portfolio [5] Future Guidance - Zoetis raised its 2025 adjusted earnings outlook to a range of $6.30-$6.40 per share, up from the previous range of $6.20-$6.30 [10] - Revenue guidance for 2025 was also increased to $9.45-$9.6 billion from the earlier range of $9.425 billion to $9.575 billion [10]

Financial Performance - Revenue reached $2.46 billion, a 4% increase compared to the previous year[47] - Adjusted Net Income was $783 million, representing a 10% year-over-year increase[47] - Adjusted Diluted EPS increased to $1.76, a 13% rise compared to the previous year[47] - The company is raising its 2025 revenue outlook to $9450 million - $9600 million[23] - The company is raising its 2025 adjusted net income outlook to $2825 million - $2875 million[23] - The company is raising its 2025 adjusted diluted EPS outlook to $630 - $640[23] Segment Performance - U S segment revenue totaled $1.4 billion, with 7% organic operational growth[20] - U S Companion Animal revenue reached $1.2 billion, a 9% year-over-year increase[20] - International segment revenue amounted to $1.1 billion, showing 9% organic operational growth[20] - International Livestock revenue grew by 10% on an organic operational basis[20] Product Performance - The Simparica franchise experienced 17% operational growth, with revenue reaching $448 million[29] - The Key Dermatology franchise grew by 11% operationally, with revenue reaching $460 million[34] - Livestock revenue increased by 6% on an organic operational basis, reaching $631 million (excluding MFA revenue)[44]

Core Viewpoint - Zoetis, Inc. (ZTS) is anticipated to exceed expectations in its second-quarter 2025 earnings report, with projected revenues of $2.4 billion and earnings of $1.61 per share [1][5]. Revenue Sources - The company generates most of its revenue from a diverse portfolio of veterinary medicines and vaccines for livestock and companion animals, with additional income from non-pharmaceutical categories such as nutritional products and precision animal health services [2]. Geographical Performance - Revenues from the United States segment are expected to rise, driven by increased sales of companion animal products, with estimates at $1.33 billion [3]. - The International segment is also projected to see revenue growth, with estimates around $1.05 billion, attributed to higher sales of companion animal products [4]. Product Performance - Strong demand for products like Simparica Trio, Librela, and Apoquel is likely to boost sales in the companion animal segment, while livestock product revenues may decline due to divestitures [5][6]. - Key products contributing to growth include monoclonal antibodies for osteoarthritis pain and flea, tick, and heartworm combination products [6]. Regulatory Approvals - The FDA's recent approval of Simparica Trio for preventing flea tapeworm infections is expected to enhance sales further [8]. Historical Performance - Zoetis has a strong earnings surprise history, surpassing estimates in the last four quarters with an average surprise of 5.21% [12]. Earnings Prediction - The company has an Earnings ESP of +0.42%, indicating a likelihood of beating the consensus estimate of $1.61 per share [14].

Core Viewpoint - Zoetis, Inc. reported strong first-quarter 2025 results with adjusted earnings of $1.48 per share, exceeding expectations and showing year-over-year growth [1][2] Financial Performance - Total revenues increased by 1% year over year to $2.22 billion, surpassing the Zacks Consensus Estimate of $2.19 billion [2] - U.S. segment revenues rose by 2% to $1.183 billion, although it fell short of the consensus estimate [3] - International segment revenues remained flat year over year but increased by 7% on an operational basis to $1.008 billion, beating estimates [7] Product Performance - Sales of companion animal products in the U.S. surged by 8% to $973 million, driven by monoclonal antibody products and dermatology portfolio [4] - Livestock product sales in the U.S. declined by 21% to $210 million, primarily due to the divestiture of the medicated feed additive portfolio [5] - Ex-U.S. sales of companion animal products rose by 4% to $573 million, with significant contributions from OA pain products and dermatology products [8] Guidance Update - Zoetis raised its 2025 guidance for adjusted earnings to a range of $6.20-$6.30 per share and revenue projection to $9.425 billion to $9.575 billion [13]

Core Viewpoint - Zoetis, Inc. is expected to report its first-quarter 2025 earnings on May 6, 2025, with revenue estimates at $2.19 billion and earnings at $1.40 per share [1]. Group 1: Revenue Sources - The company generates most of its revenues from a diversified portfolio of veterinary medicines and vaccines for livestock and companion animals, with additional revenues from non-pharmaceutical categories like nutritional products and precision animal health services [2]. - In the United States segment, revenues are projected to increase to $1.19 billion, driven by rising sales of companion animal products, with model estimates at $1.17 billion [3]. - The International segment is also expected to see revenue growth, estimated at $0.99 billion, with model estimates at $1.01 billion, primarily due to higher sales of companion animal products [4]. Group 2: Product Performance - Sales of companion animal products, particularly monoclonal antibodies for osteoarthritis pain (Librela for dogs and Solensia for cats), and the flea, tick, and heartworm combination product Simparica Trio, are anticipated to drive revenue growth in both segments [5]. - The FDA recently approved a new indication for Simparica Trio, enhancing its market position as the only canine combination parasiticide indicated to prevent flea tapeworm infections, which is expected to boost future sales [7]. - Livestock product sales in the U.S. are expected to decline due to the divestiture of certain product lines, while international livestock sales are projected to rise, driven by price increases in cattle and poultry portfolios [8]. Group 3: Earnings Surprise History - Zoetis has a strong earnings surprise history, surpassing estimates in the last four quarters with an average surprise of 4.53%, including a 2.19% surprise in the last reported quarter [10]. - The current Earnings ESP for Zoetis is -1.15%, indicating that the most accurate estimate of $1.38 per share is lower than the consensus estimate of $1.40 per share [12].

Core Viewpoint - The current economic environment presents a favorable opportunity for investors to consider solid dividend stocks, which tend to be more resilient than non-dividend-paying companies amid market volatility and potential recession [1]. Group 1: Dividend Stocks Overview - Four recommended dividend-paying stocks during the current market sell-off are AbbVie, Amgen, Bristol Myers Squibb, and Zoetis [2]. Group 2: AbbVie - AbbVie is recognized for its strong position in immunology, despite facing challenges such as a patent cliff and clinical setbacks [3]. - The company has increased its 2027 revenue guidance for key products Skyrizi and Rinvoq by $4 billion to over $31 billion, indicating strong growth potential [4]. - AbbVie has a robust pipeline and a history of increasing dividends for 53 consecutive years, with a forward yield of 3.9%, significantly above the S&P 500 average of 1.3% [5]. Group 3: Amgen - Amgen's shares faced a decline due to underperformance of its weight loss candidate, MariTide, but the company has a strong portfolio with over 10 blockbuster drugs [6]. - Key growth drivers include asthma medicine Tezspire and FDA-approved Tepezza for thyroid eye disease, supporting a strong revenue outlook [7]. - Since initiating dividends in 2011, Amgen has increased payouts by 750%, with a forward yield exceeding 3.5% [8]. Group 4: Bristol Myers Squibb - Bristol Myers is facing significant patent cliffs, particularly for its best-sellers Opdivo and Eliquis, but has managed to secure new approvals to mitigate revenue loss [9]. - Newer medicines like Reblozyl and Opdualag are expected to drive future sales growth [10]. - The company has increased its dividend by nearly 68% over the past decade, offering a yield of 5.1% [11]. Group 5: Zoetis - Zoetis, a leader in animal health, started the year with disappointing guidance but has a strong portfolio with 15 products generating over $100 million in annual sales [12]. - The company is expected to overcome current challenges with its key product Apoquel and has new approvals in the pipeline to drive growth [13]. - Zoetis has increased its dividends by about 500% over the past decade, although its yield is 1.4% [14].