Zoetis Results Top Expectations
February 16 2016 - 8:30AM
Dow Jones News
Zoetis Inc. on Tuesday reported stronger-than-expected results
for its fourth quarter, but the animal-health company lowered its
revenue guidance for the year as it faces foreign-exchange
headwinds.
Zoetis, which was spun off by drug company Pfizer Inc. in 2013,
is the world's leading seller of vaccines and medicines for
livestock and household pets by sales. The company has been helped
by its acquisition of Abbott Laboratories Inc.'s pet-products
business, though foreign-exchange impacts have hurt its
results.
For 2016, Zoetis said it is now expecting revenue of $4.65
billion to $4.78 billion, down from its November guidance of $4.75
billion to $4.88 billion
The company said the change reflects currency swings and changes
to its accounting for its Venezuela business.
For 2017, Zoetis now expects revenue of $4.95 billion to $5.15
billion, compared with its November guidance of $5.03 billion to
$5.23 billion.
The company backed its earnings forecasts for both years.
In the latest quarter, the company's pet-drug sales jumped 19%
on an operational basis, which excludes currency impacts. The unit
was helped by the Abbott acquisition.
Livestock sales slipped 1% on an operational basis, as the
timing of seasonal buying patterns hurt U.S. swine and cattle
product sales.
In all, Zoetis reported a profit of $22 million, or 4 cents a
share, down from $126 million, or 25 cents a share, a year earlier.
Profit was hurt by changes in the company's accounting for its
Venezuela business.
Excluding special items, earnings were 43 cents a share.
Analysts polled by Thomson Reuters had forecast 39 cents a share in
earnings.
Revenue fell 3.5% to $1.27 billion. Analysts had expected $1.25
billion in revenue.
Shares of Zoetis, down 11% over the past three months, were
inactive in premarket trading
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
February 16, 2016 08:15 ET (13:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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