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Zoetis (ZTS) Tops Q3 EPS by 10c; Issues Solid Outlook

November 3, 2015 7:08 AM

Zoetis (NYSE: ZTS) reported Q3 EPS of $0.50, $0.10 better than the analyst estimate of $0.40. Revenue for the quarter came in at $1.2 billion versus the consensus estimate of $1.18 billion.

Zoetis sees FY2015 EPS of $1.70-$1.74, versus the consensus of $1.66. Zoetis sees FY2015 revenue of $4.7-4.75 billion, versus the consensus of $4.76 billion.

Zoetis sees FY2016 EPS of $1.84-$1.94, versus the consensus of $1.90. Zoetis sees FY2016 revenue of $4.75-4.875 billion, versus the consensus of $4.76 billion.

Zoetis sees FY2017 EPS of $2.24-$2.38.

We continued to deliver strong revenue and adjusted net income growth this quarter, based on our diverse portfolio of high-quality products and our continued discipline on costs and expenses,” said Zoetis Chief Executive Officer Juan Ramón Alaix. “We generated operational growth of 9% in revenue and 31% in adjusted net income, delivering adjusted diluted EPS of 50 cents per share. This quarter’s growth was largely due to the performance of our livestock business in the U.S., the integration of Abbott Animal Health products into our business, and the growth of recent product launches, led by APOQUEL."

“Despite some global economic challenges, the animal health industry remains resilient based on the strong fundamental drivers for improved protein production and healthier pets,” said Alaix. “Our growth strategies and resources are aligned against these drivers to expand our market leadership in the industry. The recently announced acquisition of PHARMAQ, a market-leading company in aquatic health, is an example of this growth strategy and will bring us another platform and pipeline to strengthen our core livestock business.”

“The financial highlights of the quarter were once again operational revenue growth across our portfolio and cost discipline that drove significant growth in adjusted net income,” said Zoetis Chief Financial Officer Paul Herendeen. “The productivity of our R&D engine and performance in the U.S. and key emerging markets like Brazil and China give us confidence in our future prospects. With this view, we are updating our guidance for full year 2015 and our outlook for full year 2016 and 2017, while managing the expected headwinds of foreign exchange.”

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

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