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Zoetis Q1 Earnings & Revenues Beat Estimates, '25 Outlook Raised

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Zoetis, Inc. (ZTS - Free Report) delivered first-quarter 2025 adjusted earnings (excluding one-time items) of $1.48 per share, which surpassed the Zacks Consensus Estimate of $1.40. In the year-ago quarter, the company delivered adjusted earnings of $1.38 per share.

Total revenues grew 1% year over year to $2.22 billion in the reported quarter, which beat the Zacks Consensus Estimate of $2.19 billion. In the year-ago quarter, the company reported total revenues of $2.19 billion. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

ZTS’ Q1 Results in Detail

Zoetis derives the majority of its revenues from a diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. The company reports business results under two geographical operating segments — the United States and International.

Revenues from the U.S. segment increased 2% year over year to $1.183 billion in the reported quarter, missing the Zacks Consensus Estimate of $1.186 billion. The reported figure, however, beat our model estimate of $1.165 billion.

Sales of companion animal products in the U.S. region jumped 8% from the prior-year quarter’s level to $973 million, primarily driven by Zoetis’ monoclonal antibody products for osteoarthritis (OA) pain, Librela for dogs and Solensiafor cats, as well as its flea, tick and heartworm combination product for dogs, Simparica Trio. The uptick was also fueled by the company’s key dermatology portfolio, including Apoqueland Cytopoint.

Apoquel is also approved as the first and only chewable treatment in the United States for controlling pruritus related to allergic dermatitis and control of atopic dermatitis in dogs at least 12 months of age. The drug’s expanded label has been contributing to the sales.

Sales of livestock products in the United States decreased 21% in the first quarter to $210 million. The decline was mainly due to the divestiture of the medicated feed additive (MFA) product portfolio and related assets.

Shares of Zoetis have lost 3% year to date compared with the industry’s 0.3% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Revenues in the International segment were flat year over year on a reported basis and up 7% on an operational basis to $1.008 billion, beating the Zacks Consensus Estimate of $0.987 billion. The reported figure, however, fell short of our model estimate of $1.011 billion.

Ex-U.S. sales of companion animal products rose 4% on a reported basis and 10% on an operational basis to $573 million, driven by growth in several key products. These included OA pain products, Librela for dogs and Solensia for cats, dermatology products like Apoquel and Cytopoint, as well as Zoetis’ parasiticide products, such as Simparica and the Simparica Trio.

Livestock product sales declined 4% year over year on a reported basis to $435 million, largely due to foreign exchange and the divestiture of the MFA product portfolio and related assets. However, the reported figure grew 4% on an operational basis, primarily driven by sales of Zoetis’ cattle products in Brazil and other emerging markets, along with increased vaccine sales in key salmon markets.

Other Updates From ZTS

Around mid-April, the FDA approved a new indication for Zoetis’ Simparica Trio to prevent flea tapeworm infections by targeting and killing vector fleas in treated dogs. With this approval, the triple combo drug is now the only canine combination parasiticide indicated to prevent flea tapeworm infections at the source by eliminating carrier fleas before they can transmit the parasite. The label expansion is expected to further boost sales in the quarters ahead.

ZTS’ 2025 Guidance Raised

Zoetis raised the guidance it had previously issued for 2025. It now expects adjusted earnings in the band of $6.20-$6.30 per share compared with the previously announced range of $6.00-$6.10 per share.

Revenue projection has also been increased to the band of $9.425 billion to $9.575 billion from the previously guided range of $9.225-$9.375 billion.

Zoetis Inc. Price, Consensus and EPS Surprise

Zoetis Inc. Price, Consensus and EPS Surprise

Zoetis Inc. price-consensus-eps-surprise-chart | Zoetis Inc. Quote

ZTS’ Zacks Rank and Stocks to Consider

Zoetis currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Bayer (BAYRY - Free Report) , ADMA Biologics Inc. (ADMA - Free Report) and Beam Therapeutics Inc. (BEAM - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for Bayer’s earnings per share have increased from $1.14 to $1.22 for 2025. During the same time, earnings per share have increased from $1.23 to $1.31 for 2026. Year to date, shares of Bayer have gained 40.4%. 

BAYRY’s earnings matched estimates in two of the trailing three quarters while missing the same on the remaining occasion, the average negative surprise being 19.61%. 

In the past 60 days, estimates for ADMA Biologics’ earnings per share have increased from 69 cents to 71 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from 87 cents to 93 cents. Year to date, shares of ADMA have rallied 38.3%.

ADMA’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 32.80%.

In the past 60 days, estimates for Beam Therapeutics' loss per share have narrowed from $4.45 to $4.27 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $4.94 to $4.80. Year to date, shares of BEAM have lost 20.1%.

BEAM’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 3.92%.

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