Zoetis Q3 2024 Earnings Report
Key Takeaways
Zoetis reported strong Q3 2024 results, with revenue reaching $2.4 billion, an 11% increase compared to Q3 2023. Net income grew by 14% to $682 million, and adjusted net income increased by 15%. The company has raised its full-year 2024 revenue and adjusted EPS guidance, reflecting confidence in its diverse portfolio and market leadership.
Revenue reached $2.4 billion, growing 11% overall and 14% operationally.
Net income increased by 14% to $682 million, or $1.50 per diluted share.
U.S. revenue grew by 15%, driven by companion animal products.
International revenue increased by 13% operationally, with growth in both companion animal and livestock products.
Zoetis
Zoetis
Zoetis Revenue by Segment
Zoetis Revenue by Geographic Location
Forward Guidance
Zoetis raises its full year 2024 guidance for revenue to $9.2 - $9.3 billion, representing operational growth of 10% to 11%, with adjusted diluted EPS of $5.86 to $5.92. The company updates full year operational growth in adjusted net income to 13.5% to 14.5%.
Positive Outlook
- Revenue between $9.200 billion to $9.300 billion (operational growth of 10% to 11%)
- Adjusted net income between $2.670 billion to $2.695 billion (operational growth of 13.5% to 14.5%)
- Adjusted diluted EPS between $5.86 to $5.92
- Strong first three quarters
- Underlying strength in companion animal
Challenges Ahead
- Guidance reflects foreign exchange rates as of mid-October.
- Certain significant items and acquisition and divestiture-related costs: $126 - $136 million
- Adjusted interest expense and other (income)/deductions-net: Approximately $190 million
- Effective tax rate on adjusted income: 20.0% to 20.5%
- Adjusted cost of sales as a percentage of revenue: Approximately 29.3%
Revenue & Expenses
Visualization of income flow from segment revenue to net income