Zoetis Boosts Profit and Revenue Forecasts Amid Strong Demand for Pet Medicines and Vaccines

121

Animal healthcare leader Zoetis Inc. (ZTS.N) announced on Tuesday an upward revision of its annual profit and revenue forecasts, reflecting robust demand for its pet medicines and vaccines. The company, renowned for its comprehensive portfolio of animal health solutions, expects adjusted earnings for 2024 to range between $5.78 and $5.88 per share. This is an increase from its previous forecast, which projected earnings between $5.71 and $5.81 per share.

cAdditionally, Zoetis has revised its full-year revenue forecast to a range of $9.1 billion to $9.25 billion, up from the earlier estimate of $9.05 billion to $9.2 billion. This optimistic outlook underscores the company’s confidence in the ongoing demand for its products.

The animal healthcare sector has faced challenges recently, including staffing shortages at veterinary clinics and inflationary pressures impacting pet owners’ spending. Despite these obstacles, Zoetis has seen growth driven primarily by its medical treatments for chronic conditions in pets. In May, the company noted that while visits to vet clinics for wellness and diagnostic services had declined, its business was buoyed by the strong performance of its treatment offerings.

Zoetis provides a wide range of products, including vaccines, medicines, and diagnostic solutions for animals. The company serves over 45 countries outside the United States, enhancing its global footprint and market reach.

In its second-quarter financial results, Zoetis reported revenue of $2.36 billion, surpassing Wall Street’s consensus estimate of $2.31 billion, according to LSEG data. The company’s companion animal segment, which focuses on vaccines and treatments for dogs, cats, and horses, saw a significant increase in sales. This segment’s revenue rose by 10.7%, reaching $1.65 billion.

The growth in revenue was driven by heightened demand for several key products, including osteoarthritis pain medications such as Librela for dogs and Solensia for cats. Additionally, the company’s tick and flea control drugs, Simparica and Simparica Trio, as well as dermatology treatments Apoquel and Cytopoint, contributed to the revenue increase. Zoetis anticipates these products will continue to drive growth throughout the year.

On an adjusted basis, Zoetis achieved a second-quarter profit of $1.56 per share, surpassing analysts’ average estimate of $1.49 per share. This performance highlights the company’s strong operational execution and its ability to capitalize on the growing demand for pet healthcare solutions.