What was the main driver of revenue growth for Zoetis in the nine-month period?

Revenue growth was primarily driven by a 6% increase in operational revenue, fueled by strong sales in the U.S. and emerging markets across both livestock and companion animal segments. Volume increases accounted for 4% of the operational revenue growth, with pricing contributing an additional 2%.

How did foreign exchange rates impact Zoetis's financial performance?

Foreign exchange rates had an unfavorable impact of approximately $54 million, or 1%, on revenue for the nine months ended September 28, 2014. This was mainly due to the depreciation of currencies in international markets, particularly the Brazilian real and the Argentine peso.

What is the company's financial outlook for the full year 2014?

Zoetis updated its full-year 2014 guidance, projecting revenue in the range of $4.7 to $4.75 billion and adjusted diluted earnings per share (EPS) between $1.50 and $1.54. This guidance reflects the company's confidence in its business performance.

What is 'Adjusted Net Income' and why does the company report it?

Adjusted Net Income is a non-GAAP financial measure that excludes certain items such as purchase accounting adjustments, acquisition-related costs, and certain significant items. Zoetis reports this to provide investors with a clearer view of the performance of its core operations, excluding items that are not directly related to ongoing business activities. Management also uses this measure for internal performance assessment.

ZTS 10-Q Quarterly Report Q3 FY2014 — Revenue, Net Income, EPS

Summary

Zoetis Inc. reported solid financial results for the nine months ended September 28, 2014, with total revenue increasing by 5% to $3,465 million and net income attributable to Zoetis Inc. rising by 15% to $457 million. This growth was primarily driven by a 6% increase in operational revenue, stemming from strong performance in both livestock and companion animal segments, particularly in the U.S. and emerging markets. The company demonstrated improved cost management, with Selling, General, and Administrative (SG&A) expenses decreasing by 1% over the period. Despite a $54 million unfavorable impact from foreign exchange, Zoetis showcased resilience. The company also maintained a healthy liquidity position, with cash and cash equivalents at $598 million and a strong current ratio of 3.36:1. The company provided an updated financial guidance for the full year 2014, projecting revenue between $4.7 and $4.75 billion and adjusted diluted EPS between $1.50 and $1.54, indicating continued confidence in its business outlook.

Financial Highlights

51 data points

Beta

Revenue

$1.21B

0.6% Gross Margin

Net Income

$167.00M

0.1% Net Margin

EPS (Diluted)

$0.33

Total Assets

$6.53B

Cash & Equivalents

$598.00M

Free Cash Flow

$61.00M

Financial Statements

Beta

Revenue	$1.21B
Cost of Revenue	$434.00M
Gross Profit	$776.00M
SG&A Expenses	$394.00M
Operating Expenses	$970.00M
Interest Expense	$29.00M
Net Income	$167.00M
EPS (Basic)	$0.33
EPS (Diluted)	$0.33
Shares Outstanding (Basic)	501.45M
Shares Outstanding (Diluted)	502.44M

Key Highlights

1Revenue for the nine months ended September 28, 2014, increased by 5% to $3,465 million, compared to $3,307 million in the prior year period.
2Net income attributable to Zoetis Inc. grew by 15% to $457 million for the nine months ended September 28, 2014, up from $399 million in the comparable period.
3Operational revenue, excluding foreign exchange impacts, increased by 6% year-over-year for the nine-month period.
4SG&A expenses decreased by 1% for the nine months ended September 28, 2014, reflecting effective cost management.
5The company reported $598 million in cash and cash equivalents as of September 28, 2014.
6Zoetis provided full-year 2014 guidance, forecasting revenue between $4.7 and $4.75 billion and adjusted diluted EPS between $1.50 and $1.54.

Zoetis Inc. Quarterly Report for Q3 Ended Sep 28, 2014

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions