Animal health giant Zoetis trimmed its sales outlook Tuesday, but ZTS stock reversed a premarket dip and climbed on the easy second-quarter beat.
Overall, Zoetis earned an adjusted $1.41 per share on $2.18 billion in sales, growing a respective 18% and 6%. Both metrics came in ahead of analyst forecasts for adjusted profit of $1.31 a share and $2.16 billion in sales, according to FactSet.
Livestock sales were stagnant for Zoetis, however, coming in flat at $671 million. But that topped expectations for $653.5 million. Meanwhile, sales of products for pets — Zoetis' much bigger business — grew 9% to $1.49 billion. Pet sales missed projections for $1.5 billion.
The company's own forecast proved to be a mixed bag. Zoetis raised its adjusted profit outlook and now expects to earn $5.37 to $5.47 per share. That's in line with ZTS stock analyst estimates for $5.41 a share.
ZTS Stock: Trimming Forecasts
But Zoetis trimmed its sales forecast and now expects $8.5 billion to $8.65 billion. At the midpoint, that missed the Street's projection for $8.64 billion.
Zoetis maintained its expectations for 6% to 8% operational growth this year, noting it updated the outlook due to exchange rates and a one-time gain from a business development deal.
On the stock market today, ZTS stock rose 4.8% to close at 189.30.
Shares topped a buy point at 187.82 out of a cup base, according to MarketSmith.com. Zoetis stock previously broke out in late July, but shares quickly fell back below their entry.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
