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Sep 30, 2023
Zoetis Q3 2023 Earnings Report
Zoetis reported strong third quarter results with operational growth in revenue and adjusted net income, driven by a diverse portfolio across markets and species.
Key Takeaways
Zoetis reported a 7% increase in revenue, reaching $2.2 billion for Q3 2023. Net income increased by 13% to $596 million, with earnings per diluted share at $1.29. Adjusted net income was $629 million, or $1.36 per diluted share. The company has updated its full-year revenue guidance to $8.475 - $8.550 billion due to foreign exchange rates and narrowed operational growth guidance.
Revenue reached $2.2 billion, a 7% increase, with net income at $596 million, or $1.29 per diluted share.
Operational revenue growth was 8%, and adjusted net income grew by 13%.
U.S. revenue increased by 8%, while international revenue also grew by 8% operationally.
Companion animal portfolio grew 11% operationally, and the livestock portfolio grew 3% operationally.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Zoetis is updating its full year reported 2023 guidance due to foreign exchange rates.
Positive Outlook
- Revenue between $8.475 billion to $8.550 billion
- Operational revenue growth of 6.5% to 7.5%
- Adjusted cost of sales as a percentage of revenue approximately 29%
- Adjusted SG&A expenses between $2.095 billion to $2.115 billion
- Adjusted R&D expenses between $600 million to $610 million
Challenges Ahead
- Adjusted interest expense and other (income)/deductions-net approximately $160 million
- Effective tax rate on adjusted income 20.0% to 20.5%
- Adjusted diluted EPS between $5.38 to $5.43
- Adjusted net income between $2.490 billion to $2.515 billion
- Operational growth of adjusted net income 7.5% to 8.5%
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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