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Zoetis Inc.’s (ZTS - Analyst Report) second quarter 2013 earnings (excluding special items) of 36 cents per share were in line with the Zacks Consensus Estimate. Second quarter 2013 earnings were 3% above the year-ago figure. Higher revenues aided results in the reported quarter.

Revenues at Zoetis climbed 2% to $1.11 billion in the second quarter of 2013 despite a 2% negative impact of foreign currency movements. Revenues were shy of the Zacks Consensus Estimate of $1.13 billion. We note that Zoetis is the former Animal Health business of Pfizer Inc. (PFE - Analyst Report). Zoetis started trading on the New York Stock Exchange from Feb 1, 2013.

Zoetis boasts of a robust and diversified product portfolio. It is divided into five categories – anti-infectives, vaccines, parasiticides, medicated feed additives and other pharmaceuticals for veterinarians and livestock producers.

Zoetis markets its offerings primarily across 8 species: cattle, swine, poultry, sheep and fish (livestock) and dogs, cats and horses (companion animals). In the second quarter of 2013, sales of livestock products accounted for 60.1% of total revenues. The balance came from the companion animal products.

Geographically, the company operates in four segments- the U.S, Europe/Africa/Middle East (EuAfME), Canada/Latin America (CLAR), and Asia/Pacific (APAC). Sales improved in the U.S. (4%), CLAR (1%) and APAC (4%) markets. Sales in the EuAfME market declined 1% due to the 3% negative impact of foreign currency movements.

Outlook Maintained

Zoetis reaffirmed its earlier issued guidance for 2013. The company continues to expect revenues in the range of $4.425 billion-$4.525 billion. The current Zacks Consensus Estimate stands at $4.5 billion. Zoetis continues to expect adjusted earnings for 2013 in the range of $1.36-$1.42 per share. The pre-earnings Zacks Consensus Estimate is $1.41 per share.

Zoetis currently carries a Zacks Rank #4 (Sell). Companies like Questcor Pharmaceuticals, Inc. (QCOR - Analyst Report) and Gilead Sciences Inc. (GILD - Analyst Report) appear to be well placed with a Zacks Rank #1 (Strong Buy).

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