NYSE$ZTS

Zoetis · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Zoetis's revenue increased, but net income and EPS decreased due to distributor de-stocking and other factors.

Zoetis reported a 1% increase in revenue to $2.0 billion for Q1 2023, with a net income of $552 million, a 7% decrease. Adjusted net income was $607 million, a 3% decline. The company maintained its full-year revenue guidance of $8.575 - $8.725 billion and operational revenue growth of 6% to 8%.

  • Revenue grew 1% to $2.0 billion, with 4% operational growth.
  • Net income decreased 7% to $552 million, with adjusted net income down 3% to $607 million.
  • U.S. revenue decreased 1%, while international revenue increased 3% on a reported basis and 10% operationally.
  • Full-year revenue guidance maintained at $8.575 - $8.725 billion, with operational growth of 6% to 8%.

Headline financials

Total Revenue

$2B

Previous: $1.99B+0.7%
EPS (adj)

$1.31

Previous: $1.32-0.8%
U.S. Revenue Growth

-1.0%

Previous: 9.0%-111.1%
International Revenue Growth

10.0%

Previous: 3.0%+233.3%
Capital Expenditures

-$223M

Previous: -$115M-93.9%
Free Cash Flow

$329M

Previous: $480M-31.5%
Net Income

$552M

Previous: $595M-7.2%
Operating Income

$697M

Previous: $777M-10.3%
Gross Profit

$1.41B

Previous: $1.42B-0.4%
Cash & Equivalents

$2.11B

Previous: $3.14B-32.7%
Total Assets

$13.8B

Previous: $13.9B-0.8%
Stock-Based Comp

$9M

Previous: $16M-43.8%

Revenue & EPS history

Zoetis · Revenue · Quarterly

$2B

Q1 2023+0.7%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Zoetis · $2B total across 3 segments · Q1 2023

  • Companion Animal
    $1.23B-3.0%
  • Livestock
    $758M+7.5%
  • Contract Mfg & Human Health
    $17M-5.6%

Forward guidance

Zoetis is maintaining its full year 2023 guidance, which includes revenue between $8.575 billion to $8.725 billion (operational growth of 6% to 8%), reported net income between $2.345 billion to $2.400 billion, adjusted net income between $2.490 billion to $2.540 billion (operational growth of 7% to 9%), reported diluted EPS between $5.03 to $5.14, and adjusted diluted EPS between $5.34 to $5.44.

Tailwinds

  • Revenue between $8.575 billion to $8.725 billion
  • Operational growth of 6% to 8%
  • Reported net income between $2.345 billion to $2.400 billion
  • Adjusted net income between $2.490 billion to $2.540 billion
  • Operational growth of 7% to 9%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.4%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+0.5%

Avg return

30 days after

55%

32 / 58 earnings

Positive

+8.1%

Q4 2018

Best reaction

-13.7%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%-30.9%-28.5%
Q4 2025-2.4%-2.4%-10.1%
Q3 2025-13.7%-16.7%-16.6%
Q2 2025-3.7%-2.9%+0.9%
Q1 2025-5.3%+0.8%+6.7%
Q4 2024-5.1%-10.0%-7.3%
Q3 2024-3.7%-2.8%-3.6%
Q2 2024+5.7%+6.0%+6.7%
Q1 2024+5.4%+6.3%+7.0%
Q4 2023-6.4%-4.2%-11.6%
Q3 2023+7.1%+10.4%+18.3%
Q2 2023+4.8%+5.6%+3.9%
Q1 2023+4.8%+3.7%-3.3%
Q4 2022+7.3%+5.4%+1.9%
Q3 2022-9.3%-7.6%+6.8%
Q2 2022-3.1%-5.9%-12.9%
Q1 2022-4.3%-8.0%-4.4%
Q4 2021-0.7%-2.6%-1.4%
Q3 2021+2.7%+4.3%+5.8%
Q2 2021-1.4%-2.9%+2.4%
Q1 2021-1.3%-2.1%+0.8%
Q4 2020+1.3%-4.0%-8.6%
Q3 2020-2.9%-6.8%-9.4%
Q2 2020+0.7%-0.5%-0.3%
Q1 2020-5.4%-3.7%+7.4%
Q4 2019+0.8%+0.5%-12.2%
Q3 2019-3.0%-3.5%+0.2%
Q2 2019+7.4%+11.1%+13.8%
Q1 2019+1.9%-0.4%-0.7%
Q4 2018+8.1%+7.5%+9.8%
Q3 2018+2.9%+2.9%+4.1%
Q2 2018+6.5%+7.5%+5.3%
Q1 2018-3.6%-1.5%+2.4%
Q4 2017+7.1%+7.9%+13.6%
Q3 2017+6.5%+6.1%+12.1%
Q2 2017-1.6%-3.4%+4.9%
Q1 2017+7.0%+6.9%+12.4%
Q4 2016-4.8%-3.0%-2.1%
Q3 2016+3.6%+5.8%+3.9%
Q2 2016+3.4%+2.2%+3.1%
Q1 2016+0.2%
Q4 2015+3.4%
Q3 2015+5.2%
Q2 2015+0.3%
Q1 2015-0.2%
Q4 2014+4.3%
Q3 2014+4.1%
Q2 2014-2.8%
Q1 2014+0.4%
Q4 2011+0.1%
Q4 2013-3.7%
Q3 2012-0.5%
Q3 2013-2.1%
Q2 2012-1.4%
Q2 2013-0.0%
Q1 2012+0.9%
Q4 2012+0.9%
Q1 2013+2.2%
Q3 2011
Q2 2011
Q1 2011

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