Zoetis, Inc. ZTS delivered fourth-quarter 2024 adjusted earnings (excluding one-time items) of $1.40 per share, which surpassed the Zacks Consensus Estimate of $1.37. In the year-ago quarter, the company delivered adjusted earnings of $1.24 per share.
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Total revenues grew 5% year over year to $2.32 billion in the reported quarter, which beat the Zacks Consensus Estimate of $2.30 billion. In the year-ago quarter, the company reported total revenues of $2.21 billion.
ZTS’ Q4 Results in Detail
Zoetis derives the majority of its revenues from a diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. The company reports business results under two geographical operating segments — the United States and International.
Revenues from the U.S. segment increased 4% year over year to $1.257 billion in the reported quarter, missing both the Zacks Consensus Estimate as well as our model estimate of $1.281 billion and $1.264 billion, respectively.
Sales of companion animal products in the U.S. region jumped 7% from the prior-year quarter’s level to $1.01 billion, primarily driven by Zoetis’ monoclonal antibody products for osteoarthritis (OA) pain, Librela for dogs and Solensiafor cats, as well as its flea, tick and heartworm combination product for dogs, Simparica Trio. The uptick was also fueled by the company’s key dermatology portfolio, including Apoqueland Cytopoint.
Sales of livestock products in the United States decreased 8% in the fourth quarter to $249 million. The decline was mainly due to the divestiture of the medicated feed additive product portfolio, certain water-soluble products and related assets in October 2024, which more than offset growth in the ceftiofur and Draxxinlines of injectable antibiotic products.
Shares of Zoetis have lost 0.4% in the past three months compared with the industry’s 6.3% decline.
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Revenues in the International segment improved 6% year over year on a reported basis and 10% on an operational basis to $1.039 billion, beating the Zacks Consensus Estimate of $1.008 billion as well as our model estimate of $1.027 billion.
Sales of companion animal products rose 11% on a reported basis and 13% on an operational basis to $562 million, driven by growth in several key products. These included OA pain products, Librela for dogs and Solensia for cats, dermatology products like Apoquel and Cytopoint, as well as Zoetis’ parasiticide products, such as Simparica and the Simparica Trio.
Livestock product sales were flat year over year on a reported basis and grew 6% operationally to $477 million. Growth in both the cattle and poultry portfolios was driven largely by price increases across the broader international segment.
ZTS’ Full-Year 2024 Results
Zoetis posted 2024 adjusted earnings of $5.92 per share (excluding one-time items), which increased from the year-ago figure of $5.32 and beat the Zacks Consensus Estimate of $5.89.
Total revenues grew 8% year over year to $9.26 billion, which beat the Zacks Consensus Estimate of $9.24 billion.
ZTS’ 2025 Guidance
Zoetis issued guidance for 2025. It expects adjusted earnings in the range of $6.00-$6.10 per share in 2025.
Revenues are projected between $9.225 billion and $9.375 billion, representing an expected operational growth of 2-4%.
The declining stock price in the pre-market hours is likely influenced by the weak sales and profit forecast for 2025.
ZTS’ Zacks Rank and Stocks to Consider
Zoetis currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the sector are Castle Biosciences CSTL, BioMarin Pharmaceutical BMRN and Alnylam Pharmaceuticals ALNY, carrying a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
In the past 30 days, Castle Biosciences’ earnings estimates for 2024 have increased from 34 cents to 45 cents per share. During the same timeframe, the loss per share for 2025 has improved from $1.84 to $1.51. In the past three months, shares of Castle Biosciences have plunged 16.4%.
CSTL’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 172.72%.
In the past 30 days, estimates for BioMarin Pharmaceutical’s 2024 earnings per share have increased from $3.28 to $3.29. Estimates for 2025 earnings per share have decreased from $4.02 to $4.01 during the same timeframe. In the past three months, BioMarin Pharmaceutical shares have lost 4%.
BMRN’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 28.7%.
In the past 30 days, estimates for Alnylam Pharmaceuticals’ 2024 loss per share have remained constant at 39 cents. The estimate for 2025 earnings per share is currently pegged at 41 cents. In the past three months, shares of Alnylam Pharmaceuticals have gained 1.9%.
ALNY’s earnings beat estimates in three of the trailing four quarters and matched once, delivering an average surprise of 65.67%.
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