Why Zoetis Stock Popped by Almost 6% on Thursday
Investors were meowing for animal healthcare specialist Zoetis (NYSE: ZTS) on Thursday, following the company's release of its latest quarterly results. These obviously pleased market participants, as the stock's price leaped nearly 6% higher over the course of the trading session. That was more than enough to top the performance of the S&P 500 index, which rose by 0.9%.
First-quarter growth in several product segments
For its first quarter, Zoetis earned revenue of $2.2 billion, which was a 10% improvement over the same period of 2023. Non-GAAP (adjusted) net income also headed north, by 4% year over year to $634 million ($1.38 per share).
Both figures edged past the average analyst estimate. Collectively, prognosticators following Zoetis stock were modeling $2.15 billion for revenue and $1.35 for adjusted, per-share net income.
In the earnings release, Zoetis attributed its gains to success in the pet anti-parasite, osteoarthritis, and dermatology product segments. It also quoted CEO Kristin Peck as saying, "Our scientific breakthroughs have firmly established us as trusted and preferred partners to our customers."
The company has a fairly even revenue mix in geographic terms. In the quarter, it took in $1.2 billion from U.S. sales and $1 billion from international markets.
2024 guidance lifted
Another factor in the company's successful Thursday was its raising of full-year 2024 guidance. The company is now forecasting it will book revenue of $9.05 billion to $9.2 billion for the period, filtering down into adjusted net income of $2.62 billion to $2.67 billion ($5.71 to $5.81 per share). The current analyst top-line and bottom-line estimate falls within this range, at $9.16 billion for revenue and $5.78 per share for adjusted net income.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zoetis. The Motley Fool has a disclosure policy.
Why Zoetis Stock Popped by Almost 6% on Thursday was originally published by The Motley Fool