Zoetis · Q1 2020 earnings

Briefing

Reported revenue of $1.5 billion, growing 5%, and net income of $423 million, or $0.88 per diluted share, increasing 36% and 35%, respectively.

Zoetis reported a revenue of $1.5 billion for Q1 2020, a 5% increase compared to Q1 2019. Net income was $423 million, or $0.88 per diluted share, a 36% increase. Adjusted net income was $455 million, or $0.95 per diluted share, a 7% increase. The company lowered its full year 2020 guidance due to the estimated impact of the COVID-19 outbreak and recessionary conditions.

• Revenue in the U.S. segment was $786 million, an increase of 9% compared with the first quarter of 2019.
• Revenue in the International segment was $728 million, an increase of 1% on a reported basis and an increase of 4% operationally compared with the first quarter of 2019.
• Companion animal sales benefited from the recent acquisitions of Platinum Performance, as well as a number of regional diagnostic reference labs.
• Zoetis received approval in the U.S. and Australia for Simparica Trio™ (sarolaner/moxidectin/pyrantel), a once monthly, chewable tablet for dogs.

Headline financials

Revenue & EPS history

Zoetis is lowering its full year 2020 guidance to reflect the company’s current view of the estimated full year impact of the COVID-19 outbreak, recessionary conditions in the global economy, and foreign currency headwinds. The updated guidance includes revenue between $5.950 billion and $6.250 billion and Reported diluted EPS between $2.80 and $3.07.