ZTS Zoetis Inc

   By Joshua Jamerson 
 

Zoetis Inc.'s profit rose 24% in the latest quarter as revenue also climbed, thanks in part to more days in the period due to its accounting calendar.

The company, which also raised its earnings and revenue forecasts Wednesday, said solid sales of its companion-animal products business also drove the results, while it experienced softer growth in its livestock products.

Zoetis, spun off from Pfizer Inc. in 2013, makes vaccines and treatments for livestock and household pets. The company has been helped recently by its acquisition of Abbott Laboratories Inc.'s pet-products business, though foreign-exchange effects have dented results.

For 2016, Zoetis said it is now expecting revenue of $4.78 billion to $4.88 billion, compared with prior guidance of $4.65 billion to $4.78 billion. The company said the change reflects currency swings and the current views of its operations. The company also said it now expects adjusted per-share profit between $1.83 and $1.90 for the year, compared with prior guidance of $1.71 to $1.81.

For 2017, Zoetis now expects revenue of $5.08 billion to $5.28 billion, compared with a prior range of $4.95 billion to $5.15 billion. The company now expects adjusted per-share profit in a range of $2.24 to $2.38, compared with prior forecasts of $2.18 to $2.32.

Pershing Square, founded by William Ackman, took a roughly $2 billion stake in Zoetis in 2014, along with hedge fund Sachem Head Capital Management LP.

Pershing Square investment team member William Doyle joined the Zoetis board under a standstill agreement. In April, Pershing Square said it was pleased with Zoetis's progress and wouldn't keep Mr. Doyle on the company's board. He will step down after his term ends in May.

Pershing Square owns 8.4% of Zoetis, according to FactSet.

In all, Zoetis reported a profit of $204 million, or 41 cents a share, up from $165 million, or 33 cents a share, a year earlier.

Excluding special items, earnings were 48 cents a share. Analysts polled by Thomson Reuters had forecast 41 cents a share in earnings.

Revenue rose 5.4% to $1.16 billion. Analysts had expected $1.1 billion in revenue.

The company said six additional calendar days in the period compared with the first quarter of 2015 resulted in higher sales, costs and expenses.

In the U.S. segment, revenue climbed 12% to $582 million on higher sales of companion-animal products and products attained in the Abbott acquisition. Livestock revenue declined 4% in the U.S., due to decreased sales of cattle and swine products.

Sales in the international segment grew 13% on an operational basis, which excludes currency impacts, driven by higher livestock sales due to its acquisition of Pharmaq, a maker of vaccines for farmed fish.

Shares of Zoetis, up 16% over the past three months, were inactive in premarket trading.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

May 04, 2016 08:39 ET (12:39 GMT)

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