NYSE$ZTS

Zoetis · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported revenue of $2.1 billion, growing 5%, and net income of $529 million, or $1.12 per diluted share, increasing 3% and 5%, respectively.

Zoetis reported a strong second quarter with revenue of $2.1 billion, a 5% increase compared to the previous year. Net income was $529 million, or $1.12 per diluted share, representing a 3% and 5% increase, respectively.

  • Revenue reached $2.1 billion, a 5% increase, with net income at $529 million, up 3%.
  • Operational revenue growth was 8%, and adjusted net income grew by 9%.
  • Adjusted net income stood at $567 million, with adjusted diluted EPS of $1.20.
  • Full-year revenue guidance updated to $8.225 - $8.325 billion, with reported diluted EPS of $4.65 to $4.75, or adjusted diluted EPS of $4.97 to $5.05.

Headline financials

Total Revenue

$2.05B

Previous: $1.95B+5.3%
EPS (adj)

$1.20

Previous: $1.19+0.8%
Companion Animal Growth

14.0%

No prior period
Livestock Growth

-1.0%

No prior period
U.S. Revenue Growth

9.0%

Previous: 22.0%-59.1%
International Revenue Growth

8.0%

Previous: 31.0%-74.2%
Capital Expenditures

-$261M

Previous: -$190M-37.4%
Free Cash Flow

$268M

Previous: $322M-16.8%
Net Income

$529M

Previous: $512M+3.3%
Operating Income

$714M

Previous: $674M+5.9%
Gross Profit

$1.43B

Previous: $1.38B+3.4%
Cash & Equivalents

$2.65B

Previous: $3.66B-27.5%
Total Assets

$13.8B

Previous: $14.1B-2.1%
Stock-Based Comp

$15M

Previous: $16M-6.3%

Revenue & EPS history

Zoetis · Revenue · Quarterly

$2.05B

Q2 2022+5.3%vs Q2 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Zoetis · $2.05B total across 3 segments · Q2 2022

  • Companion Animal
    $1.37B+11.1%
  • Livestock
    $668M-4.4%
  • Contract Mfg & Human Health
    $18M-10.0%

Forward guidance

Zoetis is updating its full year 2022 guidance due to the positive outlook for the remainder of the year, as well as the negative impact of recent changes to foreign exchange rates. Revenue between $8.225 billion to $8.325 billion, Reported diluted EPS between $4.65 to $4.75 and Adjusted diluted EPS between $4.97 to $5.05.

Tailwinds

  • Revenue between $8.225 billion to $8.325 billion
  • Operational growth 9.5% to 10.5%
  • Adjusted cost of sales as a percentage of revenue 29.0% - 29.5%
  • Adjusted SG&A expenses $2,065 to $2,100
  • Adjusted R&D expenses $545 to $555

Headwinds

  • Adjusted interest expense and other (income)/deductions-net Approximately $230
  • Effective tax rate on adjusted income Approximately 20%
  • Adjusted diluted EPS $4.97 to $5.05
  • Adjusted net income $2,350 to $2,390
  • Operational growth 11% to 13%

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 2022

Historical avgQ2 2022

+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