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Mar 31, 2021

Zoetis Q1 2021 Earnings Report

Reported revenue growth, increased net income, and raised full year revenue guidance.

Key Takeaways

Zoetis reported a strong start to 2021 with a 22% increase in revenue to $1.9 billion and a 32% increase in net income to $559 million, or $1.17 per diluted share. The company's adjusted net income increased by 33% to $603 million, or $1.26 per diluted share. Due to this strong performance, Zoetis increased its full year 2021 revenue guidance to $7.500 - $7.625 billion and diluted EPS of $4.08 - $4.19 on a reported basis, or $4.42 - $4.51 on an adjusted basis.

Revenue reached $1.9 billion, a 22% increase compared to Q1 2020.

Net income was $559 million, or $1.17 per diluted share, a 32% increase.

Adjusted net income was $603 million, or $1.26 per diluted share, a 33% increase.

Full year revenue guidance increased to $7.500 - $7.625 billion.

Total Revenue
$1.87B
Previous year: $1.53B
+22.0%
EPS
$1.26
Previous year: $0.95
+32.6%
Companion Animal Growth
34%
Previous year: 9%
+277.8%
Livestock Growth
8%
Previous year: 1%
+700.0%
US Revenue Growth
19%
Previous year: 9%
+111.1%
Gross Profit
$1.32B
Previous year: $1.08B
+23.0%
Cash and Equivalents
$3.6B
Previous year: $1.95B
+84.6%
Free Cash Flow
$323M
Previous year: $314M
+2.9%
Total Assets
$13.8B
Previous year: $11.5B
+19.7%

Zoetis

Zoetis

Zoetis Revenue by Segment

Zoetis Revenue by Geographic Location

Forward Guidance

Zoetis is increasing its full year 2021 guidance, which includes revenue between $7.500 billion and $7.625 billion, reported diluted EPS between $4.08 and $4.19, and adjusted diluted EPS between $4.42 and $4.51.

Positive Outlook

  • Revenue between $7.500 billion and $7.625 billion.
  • Operational growth of 10.5% to 12%.
  • Adjusted cost of sales as a percentage of revenue approximately 30%.
  • Adjusted SG&A expenses between $1.820 billion and $1.870 billion.
  • Adjusted R&D expenses between $500 million and $520 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income