Zoetis (ZTS) Tops Q3 EPS by 19c, Revenues Beat; Raises FY20 EPS/Revenue Guidance Above Consensus

Zoetis (NYSE: ZTS) reported Q3 EPS of $1.10, $0.19 better than the analyst estimate of $0.91. Revenue for the quarter came in at $1.79 billion versus the consensus estimate of $1.63 billion.

• Reports Revenue of $1.8 Billion, Growing 13%, and Net Income of $479 Million, or $1.00 per Diluted Share, Both Increasing 11% on a Reported Basis, for Third Quarter 2020
• Reports Adjusted Net Income of $524 Million, or Adjusted Diluted EPS of $1.10 for Third Quarter 2020
• Delivers 15% Operational Growth in Revenue and 20% Operational Growth in Adjusted Net Income for Third Quarter 2020
• Increases Full Year 2020 Revenue Guidance to $6.550 - $6.625 Billion and Diluted EPS of $3.38 - $3.45 on a Reported Basis, or $3.76 - $3.81 on an Adjusted Basis

EXECUTIVE COMMENTARY

“Thanks to the resilience of our customers and the commitment of our colleagues during this ongoing pandemic, we generated better than expected results in the third quarter, with 15% operational growth in revenue and 20% operational growth in adjusted net income,” said Kristin Peck, Chief Executive Officer of Zoetis. “Our diverse and innovative portfolio drove strong sales, especially across our companion animal business, where parasiticides, vaccines, key dermatology products and diagnostics performed very well. We also saw growth in livestock this quarter, largely due to sales growth in both the U.S. cattle market and China’s swine market.”

“Looking ahead, we continue to see future growth being driven by companion animal products, particularly Simparica Trio® and the expansion of our other parasiticides and key dermatology portfolio. We will continue to invest in opportunities that can deliver the most value and impact for our customers. Given our strong performance over the past nine months – and despite expectations for a more modest fourth quarter – we are increasing our guidance to reflect our outlook for the remainder of the year,” said Peck.

GUIDANCE:

Zoetis sees FY2020 EPS of $3.76-$3.81, versus the consensus of $3.64. Zoetis sees FY2020 revenue of $6.55-6.625 billion, versus the consensus of $6.43 billion.

Zoetis is increasing its full year 2020 guidance, which includes:

• Revenue between $6.550 billion and $6.625 billion
• Reported diluted EPS between $3.38 and $3.45
• Adjusted diluted EPS between $3.76 and $3.81

This guidance reflects foreign exchange rates as of late-October. Additional details on guidance are included in the financial tables and will be discussed on the company's conference call this morning.

For earnings history and earnings-related data on Zoetis (ZTS) click here.

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