Zoetis Results Top Expectations
DOW JONES & COMPANY, INC. 8:15 AM ET 2/16/2016
Symbol Last Price Change
ZTS 40.43up 0 (0%)
PFE 29.36 0 (0%)
QUOTES AS OF 04:02:27 PM ET 02/12/2016
Zoetis Inc. (ZTS) on Tuesday reported stronger-than-expected results for its fourth quarter, but the animal-health company lowered its revenue guidance for the year as it faces foreign-exchange headwinds.
Zoetis (ZTS), which was spun off by drug company Pfizer Inc.(PFE) in 2013, is the world's leading seller of vaccines and medicines for livestock and household pets by sales. The company has been helped by its acquisition of Abbott Laboratories Inc.'s pet-products business, though foreign-exchange impacts have hurt its results.
For 2016, Zoetis(ZTS) said it is now expecting revenue of $4.65 billion to $4.78 billion, down from its November guidance of $4.75 billion to $4.88 billion
The company said the change reflects currency swings and changes to its accounting for its Venezuela business.
For 2017, Zoetis(ZTS) now expects revenue of $4.95 billion to $5.15 billion, compared with its November guidance of $5.03 billion to $5.23 billion.
The company backed its earnings forecasts for both years.
In the latest quarter, the company's pet-drug sales jumped 19% on an operational basis, which excludes currency impacts. The unit was helped by the Abbott acquisition.
Livestock sales slipped 1% on an operational basis, as the timing of seasonal buying patterns hurt U.S. swine and cattle product sales.
In all, Zoetis(ZTS) reported a profit of $22 million, or 4 cents a share, down from $126 million, or 25 cents a share, a year earlier. Profit was hurt by changes in the company's accounting for its Venezuela business.
Excluding special items, earnings were 43 cents a share. Analysts polled by Thomson Reuters had forecast 39 cents a share in earnings.
Revenue fell 3.5% to $1.27 billion. Analysts had expected $1.25 billion in revenue.
Shares of Zoetis(ZTS), down 11% over the past three months, were inactive in premarket trading
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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02-16-160815ET
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