NYSE$ZTS

Zoetis · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported strong second-quarter results with significant revenue and earnings growth, driven by companion animal products and international market expansion.

Zoetis reported a strong second quarter with revenue of $1.9 billion, a 26% increase compared to the previous year. Net income increased by 36% to $512 million, or $1.07 per diluted share. The company has raised its full-year guidance for revenue to $7.625 - $7.700 billion and diluted EPS to $4.09 - $4.19 on a reported basis.

  • Revenue increased by 26% to $1.9 billion driven by growth in companion animal products and international markets.
  • Net income grew by 36% to $512 million, with diluted EPS increasing by 35% to $1.07.
  • Operational revenue growth was 22%, and adjusted net income grew by 28% operationally.
  • Full-year revenue guidance increased to $7.625 - $7.700 billion, and diluted EPS guidance increased to $4.09 - $4.19 on a reported basis.

Headline financials

Total Revenue

$1.95B

Previous: $1.55B+25.8%
EPS (adj)

$1.19

Previous: $0.89+33.7%
U.S. Revenue Growth

22.0%

Previous: 6.0%+266.7%
International Revenue Growth

31.0%

Previous: -5.0%+720.0%
Capital Expenditures

-$190M

Previous: -$184M-3.3%
Free Cash Flow

$322M

Previous: $193M+66.8%
Net Income

$512M

Previous: $377M+35.8%
Operating Income

$674M

Previous: $518M+30.1%
Gross Profit

$1.38B

Previous: $1.1B+25.8%
Cash & Equivalents

$3.66B

Previous: $3.35B+9.1%
Total Assets

$14.1B

Previous: $13.1B+7.7%
Stock-Based Comp

$16M

Previous: $16M+0.0%

Revenue & EPS history

Zoetis · Revenue · Quarterly

$1.95B

Q2 2021+25.8%vs Q2 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Zoetis · $1.95B total across 3 segments · Q2 2021

  • Companion Animal
    $1.23B+39.3%
  • Livestock
    $699M+7.7%
  • Contract Mfg & Human Health
    $20M+17.6%

Forward guidance

Zoetis is increasing its full year 2021 guidance, including Revenue between $7.625 billion and $7.700 billion, Reported diluted EPS between $4.09 and $4.19, and Adjusted diluted EPS between $4.47 and $4.55. This guidance reflects foreign exchange rates as of mid-July.

Tailwinds

  • Revenue between $7.625 billion and $7.700 billion
  • Operational growth 12.5% to 13.5%
  • Adjusted cost of sales as a percentage of revenue approximately 30%
  • Adjusted SG&A expenses $1,870 to $1,910
  • Adjusted R&D expenses $505 to $520

Headwinds

  • Adjusted interest expense and other (income)/deductions-net approximately $255
  • Effective tax rate on adjusted income 19% - 20%
  • Adjusted diluted EPS $4.47 to $4.55
  • Adjusted net income $2,135 to $2,175
  • Operational growth 13% to 15%

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 Q2 2021

Historical avgQ2 2021

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro