Zoetis topped first-quarter expectations Thursday as pet sales continued to lead growth, but ZTS stock dipped on the company's guidance shave.
For the year, the animal-health leader cut $100 million off its sales outlook and took a dime off its per-share earnings forecast. Zoetis cited negative foreign-exchange rates for the decision.
"But this has no impact on our previous operational growth rates and assumptions for the year," Chief Executive Kristin Peck said in a written statement. "Even as we face uncertainties related to the war in Ukraine, Covid-19 lockdowns, inflation and ongoing supply chain constraints, we remain confident in the underlying strength and performance of our business."
Still, on today's stock market, ZTS stock sank 3.1% to 171.45.
ZTS Stock: Earnings, Sales Beat
During the March quarter, adjusted Zoetis earnings climbed 5% to $1.32 per share. Sales increased 6% to $1.99 billion. Both beat the average estimate of FactSet-polled analysts for $1.22 and $1.98 billion.
Sales of products that treat pets climbed 17% to $1.26 billion. Zoetis noted strong sales for its newest parasiticide for dogs, Simparica Trio, in the U.S.
But revenue from livestock treatments declined 9% to $705 million. In the U.S., sales of Draxxin faced generic competition and unfavorable conditions in the beef and dairy markets, Zoetis said in its news release. Draxxin treats and prevents a respiratory condition in cattle. Abroad, livestock sales tumbled due to falling pork prices in China.
For the full year, Zoetis guided to $8.225 billion to $8.375 billion in sales. The company also expects to earn $4.99 to $5.09 a share. Zoetis' new outlook came in below ZTS stock analysts forecast for earnings of $5.16 a share on $8.41 billion in sales.
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