NYSE$ZTS

Zoetis · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported revenue growth of 6% and net income increase of 27% for Q2 2023.

Zoetis reported a revenue of $2.2 billion for the second quarter of 2023, representing a 6% increase compared to the previous year. Net income reached $671 million, or $1.45 per diluted share, a 27% increase. The company is maintaining its full-year guidance for operational revenue growth of 6% to 8% and adjusted net income growth of 7% to 9%.

  • Revenue grew by 6% to $2.2 billion, with operational growth of 9%.
  • Net income increased by 27% to $671 million, or $1.45 per diluted share.
  • Adjusted net income was $652 million, or $1.41 per diluted share, up 15%.
  • Maintains full year guidance for operational revenue growth of 6% to 8% and adjusted net income of 7% to 9%.

Headline financials

Total Revenue

$2.18B

Previous: $2.05B+6.2%
EPS (adj)

$1.41

Previous: $1.20+17.5%
Companion Animal Growth

11.0%

Previous: 14.0%-21.4%
Livestock Growth

4.0%

Previous: -1.0%+500.0%
U.S. Revenue Growth

7.0%

Previous: 9.0%-22.2%
International Revenue Growth

11.0%

Previous: 8.0%+37.5%
Capital Expenditures

-$389M

Previous: -$261M-49.0%
Free Cash Flow

$282M

Previous: $268M+5.2%
Net Income

$671M

Previous: $529M+26.8%
Operating Income

$886M

Previous: $714M+24.1%
Gross Profit

$1.57B

Previous: $1.43B+10.2%
Cash & Equivalents

$1.72B

Previous: $2.65B-35.3%
Total Assets

$13.7B

Previous: $13.8B-0.2%
Stock-Based Comp

$17M

Previous: $15M+13.3%

Revenue & EPS history

Zoetis · Revenue · Quarterly

$2.18B

Q2 2023+6.2%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Zoetis · $2.18B total across 3 segments · Q2 2023

  • Companion Animal
    $1.49B+9.0%
  • Livestock
    $671M+0.4%
  • Contract Mfg & Human Health
    $20M+11.1%

Forward guidance

Zoetis is updating its full year reported 2023 guidance due to foreign exchange rates and a one-time gain from a business development deal.

Tailwinds

  • Maintains operational growth of 6% to 8% in revenue
  • Updates reported net income to between $2.400 billion to $2.460 billion
  • Updates adjusted net income to between $2.500 billion to $2.550 billion (maintains operational growth of 7% to 9%)
  • Updates reported diluted EPS of $5.15 to $5.27 due to the impact of foreign exchange rates and a one-time gain from a business development deal
  • Updates adjusted diluted EPS between $5.37 to $5.47 due to the impact of foreign exchange rates

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 2023

Historical avgQ2 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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