Zoetis lifts full-year guidance amid strength at companion animal unit

Investing.com -- Shares in Zoetis (NYSE:ZTS) edged higher in premarket US trading on Monday after the drugmaker reported better-than-anticipated third-quarter earnings and revenue.

The New Jersey-based company, which makes medications and vaccines for pets and livestock, also lifted its full-year financial guidance, citing particular strength at its companion animal business that sells treatments for cats, dogs and horses.

Zoetis previously raised its outlook in August. Earlier this year, it also said it had received a boost from demand for medicines for chronic conditions in pets, which helped offset a downturn in veterinary clinic visits by inflation-hit pet owners.

In a statement, Chief Executive Officer Kristin Peck said the group has retained a "relentless focus" on innovating new products. Since its last quarterly results, Zoetis has been bolstered by the approval of its Apoquel Chewable tablet associated with dermatitis in dogs. Its Rovlution Plus, which treats ticks, fleas, ear mites, lice and gastrointetinal worms and prevents heartworm disease in cats, was also approved by European Union regulators.

Sales at Zoetis's companion animal segment rose by 14% in the three months ended on Sept. 30 to $1.61 billion thanks in part to solid demand for dog and cat medications which helped offset weakness in horse treatments. Meanwhile, its livestock division increased by 6% to $758 million.

Overall revenue jumped by 11% to $2.39 billion, surpassing Bloomberg consensus estimates of $2.29 billion.

Adjusted net income attributable to Zoetis shareholders came in at $716 million, translating to per-share income of $1.58. Analysts had anticipated profit per share of $1.45.

Zoetis said it now expects to post annual adjusted earnings per share of $5.86 to $5.92 on revenue of $9.200 billion to $9.300 billion. It had previously projected adjusted income of $5.78 to $5.88 per share and sales of $9.1 billion to $9.25 billion.