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Jun 30, 2021
Zoetis Q2 2021 Earnings Report
Reported strong second-quarter results with significant revenue and earnings growth, driven by companion animal products and international market expansion.
Key Takeaways
Zoetis reported a strong second quarter with revenue of $1.9 billion, a 26% increase compared to the previous year. Net income increased by 36% to $512 million, or $1.07 per diluted share. The company has raised its full-year guidance for revenue to $7.625 - $7.700 billion and diluted EPS to $4.09 - $4.19 on a reported basis.
Revenue increased by 26% to $1.9 billion driven by growth in companion animal products and international markets.
Net income grew by 36% to $512 million, with diluted EPS increasing by 35% to $1.07.
Operational revenue growth was 22%, and adjusted net income grew by 28% operationally.
Full-year revenue guidance increased to $7.625 - $7.700 billion, and diluted EPS guidance increased to $4.09 - $4.19 on a reported basis.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Zoetis is increasing its full year 2021 guidance, including Revenue between $7.625 billion and $7.700 billion, Reported diluted EPS between $4.09 and $4.19, and Adjusted diluted EPS between $4.47 and $4.55. This guidance reflects foreign exchange rates as of mid-July.
Positive Outlook
- Revenue between $7.625 billion and $7.700 billion
- Operational growth 12.5% to 13.5%
- Adjusted cost of sales as a percentage of revenue approximately 30%
- Adjusted SG&A expenses $1,870 to $1,910
- Adjusted R&D expenses $505 to $520
Challenges Ahead
- Adjusted interest expense and other (income)/deductions-net approximately $255
- Effective tax rate on adjusted income 19% - 20%
- Adjusted diluted EPS $4.47 to $4.55
- Adjusted net income $2,135 to $2,175
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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