Zoetis Reports Strong Q1 Earnings and Revenue Growth

Impressive Q1 Performance

Zoetis Inc. (NYSE:ZTS) reported strong first-quarter results for 2024, exceeding Wall Street expectations and boosting its stock price by 4%. The global leader in animal health achieved an adjusted diluted EPS of $1.38, surpassing the consensus by $0.03. Revenue reached $2.2 billion, outperforming the forecasted $2.15 billion.

Significant Revenue Growth

The company's revenue marked a 10% increase from the same period last year, with operational growth at 12%. Adjusted net income rose by 15% operationally, underscoring the company's strong financial health. Zoetis attributed this success to a 16% revenue surge in the U.S. and an 8% operational increase internationally.

Key Drivers of Success

A standout contributor was Zoetis' companion animal portfolio, which grew by 20% operationally. This growth was fueled by strong sales in pet parasiticides, osteoarthritis pain, and dermatology products. The company's diverse portfolio and innovation in the animal health market were key drivers of its success.

Updated 2024 Guidance

Looking ahead, Zoetis has updated its full-year 2024 guidance. The company now anticipates revenue between $9.050 billion and $9.200 billion, with an adjusted EPS of $5.71 to $5.81. This places the midpoint of the EPS range slightly below the consensus estimate of $5.78, while revenue guidance brackets the consensus of $9.157 billion. Zoetis expects operational revenue growth of 8.5% to 10.5% and a 13% to 15% increase in adjusted net income for the full year.

Positive Market Reaction

The positive earnings report and upward guidance revision led to a favorable market reaction, reflecting confidence in Zoetis' ability to sustain its growth trajectory and deliver shareholder value.