Zoetis forecasts 2025 profit, revenue below estimates; shares fall
13/02/2025 13:45
Feb 13 (Reuters) - Animal healthcare company Zoetis
ZTS.N forecast annual profit and revenue below Wall Street
estimates on Thursday, partly due to a hit from a stronger
dollar, sending its shares down 9% in premarket trading.
Zoetis, which deals with vaccines, medicines as well as
diagnostic solutions for animals, forecast adjusted profit for
the year to be between $6.00 and $6.10, missing analysts'
estimate of $6.29 per share, according to data compiled by LSEG.
It forecast annual revenue to be between $9.23 billion and
$9.38 billion, below the estimate of $9.57 billion.
The lower-than-expected forecast was also in part due to the
divestiture of Zoetis' medicated feed additive product
portfolio, certain water-soluble products and related assets,
which it sold to Phibro Animal Health PAHC.O for $350 million.
The impact from the divestiture was slightly larger than we
anticipated, J.P.Morgan analyst Chris Schott said.
For the quarter, the company reported an 8% rise in revenue
in its companion animal segment to $1.57 billion, helped by
demand for its flea, tick and heartworm combination product and
pet pain products.
Quarterly sales of livestock products fell 3% to $726
million, also due to the divestiture.
Total revenue rose 5% to $2.32 billion for the reported
quarter compared with an estimate of $2.3 billion.
Zoetis' fourth-quarter adjusted profit per share of $1.40
was above an estimate of $1.34 per share.
(Reporting by Siddhi Mahatole and Sriparna Roy in Bengaluru;
Editing by Pooja Desai)
((SiddhiPrabhanjan.Mahatole@thomsonreuters.com;))