Zoetis Guidance Misses. But the stock rises as quarterly profit beats estimates.

Text size

Photograph by Andrew Schultz


the stock rose on Tuesday, even as the animal health provider released 2022 earnings forecasts that missed Wall Street estimates.

Zoetis (symbol:


) said it expects adjusted earnings in 2022 to be between $5.09 and $5.19 per share. Analysts polled by FactSet had expected $5.21 per share. The company also expects revenue for the upcoming fiscal year to be between $8.33 billion and $8.48 billion, mostly in line with estimates of $8.37 billion.

But investors appeared to dismiss concerns about the full-year guidance as Zoetis posted a strong fourth quarter and fiscal 2021. The company reported adjusted quarterly earnings of $1 per share, beating guidance by 96 cents. per share, on $1.97 billion in revenue. , beating estimates of $1.93 billion.

For the year, Zoetis earned $4.70 per share, beating consensus of $4.67 and beating the company’s guidance, which called for earnings per share to be between $4.62 and $4.67. . Revenue was $7.78 billion. Analysts expected $7.74 billion.

“We expect to continue to grow our revenues faster than the market in the year ahead, driven by continued strength in petcare; expanding our diagnostics portfolio internationally; and significant growth in livestock and pet product sales in emerging markets, including China and Brazil,” said CEO Kristin Peck.

International segment revenue rose 8% to $902 million on a reported and operational basis from the prior quarter last year, the company said, as Zoetis increased sales of its dermatology portfolio. Sales in the United States were also driven by the company’s dermatology brand, as well as its antiparasitic drugs.

Zoetis stock rose 1.1% to $198.52 on Tuesday. The stock has lost around 19% this year, after gaining 19% in the past 12 months.

Write to Sabrina Escobar at [email protected]

Comments are closed.