Zoetis shares tumble as 2025 guidance falls short of expectations

Investing.com -- Zoetis Inc. reported fourth-quarter earnings that narrowly beat analyst estimates, but its shares fell sharply as the animal health company's 2025 guidance came in below Wall Street expectations.

The Parsippany, New Jersey-based company reported adjusted earnings per share of $1.40 for the fourth quarter, edging past the analyst consensus of $1.38. Revenue for the quarter was $2.32 billion, in line with estimates.

However, Zoetis (NYSE:ZTS)' outlook for 2025 disappointed investors, sending its stock down 6.4% in early trading. The company forecasts full-year 2025 adjusted earnings per share of $6.00 to $6.10, below the $6.30 analysts were expecting. Revenue guidance of $9.225 billion to $9.375 billion also fell short of the $9.57 billion consensus estimate.

For the fourth quarter, Zoetis saw revenue increase 5% year-over-year, or 6% on an operational basis. The company's U.S. segment revenue rose 4% to $1.3 billion, driven by strong sales of companion animal products like Simparica Trio and its dermatology portfolio. However, livestock product sales in the U.S. declined 8% due to the divestiture of its medicated feed additive portfolio.

International segment revenue grew 6% on a reported basis and 10% operationally to $1.0 billion, with companion animal product sales up 13% operationally.

"Zoetis delivered excellent full year results in 2024, driven by the demand for our innovative products and the strength of our key franchises," said CEO Kristin Peck in a statement.