Zoetis Reports Second Quarter 2024 Financial Results and Raises Full Year 2024 Guidance
Intellectia.AI Updated: 2024-08-08
Zoetis Reports Second Quarter 2024 Financial Results and Raises Full Year 2024 Guidance
Zoetis Inc. (NYSE:ZTS) announced its financial results for the second quarter of 2024, indicating strong performance across several key financial metrics.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimates | QoQ Change |
|---|---|---|---|---|---|
| Total Revenue | $2.4B | $2.22B | +8% | $2.31B | +3.9% |
| Earnings Per Share (EPS) | $1.37 | $1.46 | -6% | $1.49 | -5.5% |
| Adjusted Net Income | $711M | $652M | +9% | N/A | +5.0% |
| Adjusted Diluted EPS | $1.56 | $1.40 | +11% | N/A | +11.6% |
Interpretation : Zoetis reported a revenue increase of 8% year-over-year (YoY) which exceeded Wall Street's consensus estimate of $2.31 billion. While the reported net income and EPS saw declines of 7% and 6%, respectively, on a reported basis, the company's adjusted metrics showed a more positive story, with adjusted net income and adjusted diluted EPS increasing by 9% and 11%, respectively.
Segment Revenue Performance
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | YoY Change |
|---|---|---|---|
| U.S. | $1.3B | $1.16B | +12% |
| International | $1.0B | $0.96B | +4% |
Interpretation : Revenue in the U.S. segment grew by an impressive 12%, driven by strong sales in companion animal products such as Librela® and Simparica Trio®. Similarly, the International segment saw a reported increase of 4% YoY and an operational increase of 10%, primarily driven by companion animal products.
Executive Commentary
"We had another outstanding quarter, demonstrating the strong demand for our trusted, innovative products, our ability to capture and expand markets, and the dedication of our purpose-driven colleagues," said Kristin Peck, Chief Executive Officer of Zoetis. Peck highlighted significant growth in both the U.S. and international markets, fueled by key product sectors like osteoarthritis (OA) pain treatments and dermatology offerings.
Forward Guidance
Zoetis raised its full-year 2024 guidance in response to strong performance in the first half:
- Revenue : $9.100 billion to $9.250 billion
- Reported Net Income : $2.450 billion to $2.490 billion
- Adjusted Net Income : $2.640 billion to $2.690 billion
- Reported Diluted EPS : $5.35 to $5.45
- Adjusted Diluted EPS : $5.78 to $5.88
Stock Price Movement
The stock price experienced a modest increase of approximately 0.14% following the earnings release.
With a solid second quarter and optimistic full-year guidance, Zoetis continues to demonstrate robust growth and market leadership in the animal health sector.
For detailed financial information and an archival of the conference call, visit Zoetis Investor Relations .
Zoetis Inc. is a powerhouse in the animal health industry with a diverse portfolio that serves both companion animals and livestock globally.
