Zoetis cuts full-year profit outlook as price-sensitive pet owners reduce vet visits

May 7 (Reuters) - Animal health company Zoetis ZTS.N on Thursday cut its full-year profit forecast and reported first-quarter results below Wall Street estimates, citing weaker U.S. demand for premium products and reduced spending by price-conscious pet owners.

Shares of the company fell about 12% in premarket trading.

Here are some details:

• Zoetis said veterinary clinic visits declined and competition intensified in key pet care categories such as dermatology and parasiticides, weighing on its companion-animal business.

• "The first quarter unfolded in a more challenging operating environment than we anticipated," said Zoetis CEO Kristin Peck.

• The company lowered its 2026 adjusted earnings per share forecast to $6.85-$7.00 from its prior view of $7.00-$7.10.

• The revised forecast implies a midpoint below analysts’ average expectation of $7.02, according to data compiled by LSEG.

• Zoetis also cut its annual revenue forecast to $9.68 billion -$9.96 billion from prior view of $9.83 billion-$10.03 billion, reflecting a more cautious demand environment.

• The company reported quarterly adjusted profit of $1.53 per share, missing analysts’ estimate of $1.61 per share; revenue of $2.26 billion fell short of expectations of $2.31 billion.

• U.S. revenue fell 8% to $1.09 billion, with companion-animal sales down 11% due to softer demand, competitive pressure and lower sales of its osteoarthritis treatment Librela.

• International revenue rose 17% to $1.15 billion, driven by demand for parasiticides, vaccines and diagnostics, along with pricing actions and order timing.

• Livestock sales grew 15% to $720 million, supported by strength across cattle, poultry and swine markets.