Zoetis (NYSE: ZTS) reported Q1 EPS of $0.95, $0.09 better than the analyst estimate of $0.86. Revenue for the quarter came in at $1.5 billion versus the consensus estimate of $1.5 billion.

• Reports Revenue of $1.5 Billion, Growing 5%, and Net Income of $423 Million, or $0.88 per Diluted Share, Increasing 36% and 35%, Respectively, on a Reported Basis for First Quarter 2020
• Reports Adjusted Net Income of $455 Million, or Adjusted Diluted EPS of $0.95, for First Quarter 2020
• Delivers 7% Operational Growth in Revenue and 10% Operational Growth in Adjusted Net Income for First Quarter 2020
• COVID-19 Pandemic Has Minimal Impact on First Quarter Results; Estimated Full-Year Impact Reflected in Lower 2020 Guidance
• Updates Full Year 2020 Revenue Guidance to $5.950 - $6.250 Billion and Diluted EPS of $2.80 - $3.07 on a Reported Basis, or $3.17 - $3.42 on an Adjusted Basis

“At Zoetis, we are privileged to play an essential role in sustaining and protecting animal and human life during the COVID-19 outbreak, as our products are necessary to keep pets healthy and help support a safe and productive food supply,” said Kristin Peck, Chief Executive Officer of Zoetis. “In the first quarter, the pandemic had a limited impact on our results given our February quarter end for the International segment and the timing of shelter in place orders across the U.S. We generated 7% operational growth in revenue and 10% operational growth in adjusted net income thanks to the strength of our diverse portfolio and global scope of our business.”

“As we look ahead, our business continuity plans are working well, and we continue to show great agility and responsiveness to this crisis. I am extremely proud of our colleagues, who have been maintaining our supply of critical product inventories, keeping our research on track, and serving our customers and communities in these extraordinary times,” said Peck. “While we saw a limited financial impact on our first quarter results, we are realistic about the challenges and uncertainties that the COVID-19 pandemic presents to our society, global economy and Zoetis’ business in the coming months. We expect a more significant impact from COVID-19 for the full year as the lockdowns and recession have a continued impact on our business. Because of this, we are lowering our guidance to reflect our current outlook for the full year.”

GUIDANCE:

Zoetis sees FY2020 EPS of $3.17-$3.42, versus the consensus of $3.71. Zoetis sees FY2020 revenue of $5.95-6.25 billion, versus the consensus of $6.43 billion.

Zoetis is lowering its full year 2020 guidance to reflect the company’s current view of the estimated full year impact of the COVID-19 outbreak, recessionary conditions in the global economy, and foreign currency headwinds. The updated guidance includes:

• Revenue between $5.950 billion and $6.250 billion
• Reported diluted EPS between $2.80 and $3.07
• Adjusted diluted EPS between $3.17 and $3.42

This guidance reflects foreign exchange rates as of late April. 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.