How much did Zoetis's revenue and earnings grow in Q3 2024?

Revenue rose 11% to $2.39 billion, or 14% on an operational basis excluding FX. GAAP net income was $682 million ($1.50 per diluted share, up 16%), and adjusted diluted EPS was $1.58, up 16% reported and 17% operationally.

What changed in Zoetis's full-year 2024 guidance?

Revenue guidance was raised to $9.200-$9.300 billion from $9.100-$9.250 billion, and adjusted diluted EPS guidance was raised to $5.86-$5.92 from $5.78-$5.88. Adjusted net income guidance moved to $2.670-$2.695 billion. Operational adjusted net income growth was narrowed to 13.5%-14.5% from 13.5%-15.5%.

What is driving Zoetis's growth?

U.S. companion animal sales increased 18%, led by the osteoarthritis pain mAbs Librela and Solensia, Simparica Trio, and dermatology products Apoquel and Cytopoint. Livestock grew 11% operationally, with fish and cattle contributing, though total reported livestock growth was only 6%.

Why does the reported EPS guidance differ from adjusted EPS guidance?

The gap reflects purchase accounting adjustments of roughly $0.24 per share and certain significant items and acquisition/divestiture-related costs of roughly $0.29 per share. Management notes that adjusted measures are non-GAAP and may not be comparable to other companies.

What was the impact of the Phibro divestiture?

Zoetis completed the sale of its medicated feed additive portfolio, certain water-soluble products, and related assets to Phibro Animal Health on October 31, 2024. Management presents this as a move to focus capital on higher-growth vaccine, biologic, and genetic livestock programs. The filing does not quantify the revenue or earnings impact of the sale.

ZTS 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed November 4, 2024. Cited figures are marked; the original filing is the authoritative source.

Zoetis (NYSE: ZTS) reported third quarter 2024 results on November 4, 2024 that beat the quarter on the top line and raised full-year 2024 revenue and adjusted EPS guidance.

Q3 revenue was $2.39 billion^a, up 11% reported and 14% on an operational (FX-neutral) basis, driven by 18% U.S. companion animal growth, led by the osteoarthritis pain mAbs Librela and Solensia, Simparica Trio, and dermatology products. GAAP net income was $682 million, or $1.50 per diluted share (up 16%), while adjusted diluted EPS was $1.58 (up 16% reported, 17% operational) after excluding $34 million of purchase accounting, acquisition/divestiture, and certain significant items. Management raised full-year 2024 revenue guidance to $9.200-$9.300 billion (from $9.100-$9.250 billion), implying 10-11% operational growth, and raised adjusted diluted EPS guidance to $5.86-$5.92 (from $5.78-$5.88).

Adjusted net income guidance was lifted to $2.670^b-$2.695 billion. Reported diluted EPS guidance is $5.33-$5.39, with the gap to adjusted EPS driven by roughly $0.29 of significant items and acquisition/divestiture costs and about $0.24 of purchase accounting. Adjusted SG&A and R&D guidance also moved higher, reflecting reinvestment alongside the top-line raise.

Investors should note that the company completed the divestiture of its medicated feed additive portfolio to Phibro Animal Health on October 31, 2024, which management frames as capital reallocation toward vaccines, biologics, and genetics in livestock. Growth is strongest in U.S. companion animal products, while International growth on a reported basis was muted at 7%^c because of foreign exchange headwinds (-6%), and China revenue declined 12%. The financial figures in this release are unaudited, and the information is furnished under Item 2.02 rather than filed.

02—Key points

Key Highlights

Q3 2024 revenue of $2.39B grew 11% reported and 14% operationally; U.S. revenue rose 15% and International rose 7% reported (13% operational).
U.S. companion animal sales increased 18%, driven by Librela and Solensia (OA pain mAbs), Simparica Trio, and dermatology products Apoquel and Cytopoint.
GAAP diluted EPS was $1.50 (up 16%); adjusted diluted EPS was $1.58 (up 16% reported, 17% operational), excluding $34M of pre-tax adjustments.
Full-year 2024 revenue guidance raised to $9.200-$9.300B from $9.100-$9.250B, implying 10-11% operational growth.
Full-year adjusted diluted EPS guidance raised to $5.86-$5.92 from $5.78-$5.88; reported EPS guidance is $5.33-$5.39.
Medicated feed additive portfolio divestiture to Phibro Animal Health closed October 31, 2024, reinforcing a portfolio-focus strategy.
China revenue fell 12% in Q3 and International reported growth was held back by foreign exchange (-6 points), signaling areas of softness.

03—Questions

Frequently Asked Questions

How much did Zoetis's revenue and earnings grow in Q3 2024?
Revenue rose 11% to $2.39 billion, or 14% on an operational basis excluding FX. GAAP net income was $682 million ($1.50 per diluted share, up 16%), and adjusted diluted EPS was $1.58, up 16% reported and 17% operationally.
What changed in Zoetis's full-year 2024 guidance?
Revenue guidance was raised to $9.200-$9.300 billion from $9.100-$9.250 billion, and adjusted diluted EPS guidance was raised to $5.86-$5.92 from $5.78-$5.88. Adjusted net income guidance moved to $2.670-$2.695 billion. Operational adjusted net income growth was narrowed to 13.5%-14.5% from 13.5%-15.5%.
What is driving Zoetis's growth?
U.S. companion animal sales increased 18%, led by the osteoarthritis pain mAbs Librela and Solensia, Simparica Trio, and dermatology products Apoquel and Cytopoint. Livestock grew 11% operationally, with fish and cattle contributing, though total reported livestock growth was only 6%.
Why does the reported EPS guidance differ from adjusted EPS guidance?
The gap reflects purchase accounting adjustments of roughly $0.24 per share and certain significant items and acquisition/divestiture-related costs of roughly $0.29 per share. Management notes that adjusted measures are non-GAAP and may not be comparable to other companies.
What was the impact of the Phibro divestiture?
Zoetis completed the sale of its medicated feed additive portfolio, certain water-soluble products, and related assets to Phibro Animal Health on October 31, 2024. Management presents this as a move to focus capital on higher-growth vaccine, biologic, and genetic livestock programs. The filing does not quantify the revenue or earnings impact of the sale.

04—Continue

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