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Zoetis Inc. 8-K Report, Financial Results (Feb 13, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 13, 2025
Period End
February 13, 2025
Security
ZTS
In the record · 2016–202610-K1110-Q338-K135

ZTS filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 135 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jul ’18Jul ’18
  2. Leadership change8-K · Feb ’23Feb ’23
  3. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.

Zoetis Inc. (NYSE: ZTS) reported fourth quarter and full year 2024 results on February 13, 2025, and issued full year 2025 guidance.

Q4 2024 revenue was $2.3 billiona, up 5% reported and 6% operationally, with reported net income of $581 million ($1.29 per diluted share, up 11% and 13%). Adjusted net income was $632 million, or $1.40 per diluted share. For full year 2024, revenue reached $9.3 billion (up 8% reported, 11% operational), reported net income was $2.5 billion ($5.47 per diluted share), and adjusted diluted EPS was $5.92.

Operational growth in adjusted net income was 15% for the year, and organic operational revenue growth was 12%, which excludes the October 2024 divestiture of the medicated feed additive portfolio and certain water-soluble products. The key forward-looking item is 2025 guidance: revenue of $9.225 to $9.375 billionb, implying 2% to 4% operational growth and 6% to 8% organic operational growth. Reported diluted EPS is guided at $5.70 to $5.80 and adjusted diluted EPS at $6.00 to $6.10.

Adjusted net income is expected to be $2.700 to $2.750 billionc. Management attributes the outlook to continued demand for its franchises, with companion animal products (such as Simparica Trio, Apoquel/Cytopoint, and the Librela and Solensia osteoarthritis mAbs) driving growth, while livestock products were weaker in Q4, particularly in the U.S. Investors should note the gap between reported and adjusted EPS in 2025 (roughly $0.23 of purchase accounting and about $0.07 of significant items and deal costs), and that the divestiture is depressing reported revenue growth against the prior year. The filing is furnished under Item 2.02 and is not deemed filed under the Exchange Act.

02—Key points

Key Highlights

  1. Q4 2024 revenue of $2.3 billion grew 5% reported and 6% operationally; U.S. revenue grew 4% and International grew 6% reported (10% operational).
  2. FY 2024 revenue of $9.3 billion grew 8% reported and 11% operationally; organic operational growth was 12% after excluding the divested MFA portfolio.
  3. Q4 2024 adjusted diluted EPS of $1.40 rose 13% reported, while reported diluted EPS of $1.29 rose 13%; FY 2024 adjusted diluted EPS was $5.92 versus reported $5.47.
  4. Companion animal revenue grew 8% reported (9% operational) in Q4 2024 and 13% for the full year, while livestock revenue fell 3% in Q4 on the divestiture and was flat for the full year (5% operational growth).
  5. 2025 revenue guidance of $9.225 to $9.375 billion implies 6% to 8% organic operational growth and 2% to 4% operational growth including the divestiture drag.
  6. 2025 adjusted diluted EPS guidance of $6.00 to $6.10 compares with reported diluted EPS guidance of $5.70 to $5.80, a gap driven mainly by purchase accounting adjustments.
  7. Adjusted SG&A and R&D guidance of $2.300 to $2.350 billion and $680 to $690 million, with an adjusted tax rate of about 21%, frames expected margin and cost trends for 2025.

03—Questions

Frequently Asked Questions

  1. What is Zoetis's 2025 revenue and earnings guidance?

    Zoetis guided to 2025 revenue of $9.225 to $9.375 billion, reported diluted EPS of $5.70 to $5.80, and adjusted diluted EPS of $6.00 to $6.10. Adjusted net income is expected to be $2.700 to $2.750 billion. Guidance reflects foreign exchange rates as of late January 2025.

  2. Why does reported growth differ from organic operational growth?

    Reported growth includes foreign exchange effects and the October 31, 2024 divestiture of the medicated feed additive portfolio and certain water-soluble products. Operational growth excludes FX only, while organic operational growth excludes both FX and the divested and acquired businesses, which is the cleaner measure of underlying demand.

  3. What drove Zoetis's performance in the fourth quarter of 2024?

    Companion animal products drove growth, rising 8% reported and 9% operationally, led by Simparica Trio, dermatology products Apoquel and Cytopoint, and the Librela and Solensia osteoarthritis mAbs. Livestock sales declined 3% reported due to the divestiture, partly offset by growth in ceftiofur and Draxxin injectable antibiotics. International revenue was up 10% operationally.

  4. Why is there a difference between reported and adjusted EPS?

    Adjusted EPS excludes purchase accounting adjustments, acquisition and divestiture-related costs, and certain significant items such as restructuring and asset impairments. For Q4 2024 these items added $0.11 to diluted EPS ($1.29 reported vs. $1.40 adjusted), and for full year 2024 they added $0.45 ($5.47 vs. $5.92). Management guides to similar adjustments of about $0.30 for 2025 in total.

  5. Does this 8-K filing constitute a formal financial statement filing?

    No. The results are furnished under Item 2.02 and Exhibit 99.1, which means they are not deemed filed for purposes of Section 18 of the Exchange Act and are not incorporated by reference into other filings unless specifically referenced. Full audited results would appear in the company's Form 10-K.

04—Continue

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