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Sep 30, 2020
Zoetis Q3 2020 Earnings Report
Reported revenue of $1.8 billion, growing 13%, and net income of $479 million, or $1.00 per diluted share, both increasing 11% for the third quarter of 2020.
Key Takeaways
Zoetis reported a strong third quarter in 2020, with revenue reaching $1.8 billion, a 13% increase compared to the previous year. Net income also saw an 11% increase, amounting to $479 million, or $1.00 per diluted share. The company's companion animal business was a key driver of growth, and livestock also contributed positively, especially in the U.S. cattle and China's swine markets. Due to the strong performance, Zoetis is increasing its full-year guidance for 2020.
Revenue reached $1.8 billion, a 13% increase year-over-year.
Net income increased by 11% to $479 million, or $1.00 per diluted share.
Adjusted net income was $524 million, or $1.10 per diluted share.
Companion animal products, particularly Simparica Trio and key dermatology products, drove sales growth.
Zoetis
Zoetis
Zoetis Revenue by Segment
Zoetis Revenue by Geographic Location
Revenue by Segment
Companion Animal Revenue
CapyFin.comLivestock Revenue
CapyFin.comContract Mfg. & Human Health Revenue
CapyFin.comRevenue by Geographic Location
U.S. Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Zoetis is increasing its full year 2020 guidance, including revenue between $6.550 billion and $6.625 billion, reported diluted EPS between $3.38 and $3.45, adjusted diluted EPS between $3.76 and $3.81.
Positive Outlook
- Revenue between $6.550 billion and $6.625 billion
- Operational growth 7% to 8%
- Adjusted cost of sales as a percentage of revenue approximately 30%
- Adjusted SG&A expenses $1.615 to $1.645 billion
- Adjusted R&D expenses $455 to $465 million
Challenges Ahead
- Adjusted interest expense and other (income)/deductions-net approximately $250 million
- Effective tax rate on adjusted income 19% to 20%
- Adjusted diluted EPS $3.76 to $3.81
- Adjusted net income $1.790 to $1.825 billion
- Operational growth 6% to 8%
Revenue & Expenses
Visualization of income flow from segment revenue to net income