NYSE$ZTS

Zoetis · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Zoetis's revenue grew by 1% and net income decreased by 4% for the third quarter of 2022.

Zoetis reported revenue of $2.0 billion for the third quarter of 2022, a 1% increase compared to the third quarter of 2021. Net income was $529 million, a decrease of 4%. The company lowered its full year 2022 revenue guidance to $8.000 - $8.075 billion.

  • Revenue reached $2.0 billion, a 1% increase, while net income was $529 million, a 4% decrease.
  • Operational revenue growth was 5%, and adjusted net income grew by 2%.
  • Adjusted net income was $566 million, or $1.21 per diluted share.
  • Full year 2022 revenue guidance lowered to $8.000 - $8.075 billion.

Headline financials

Total Revenue

$2B

Previous: $1.99B+0.6%
EPS (adj)

$1.21

Previous: $1.25-3.2%
Companion Animal Growth

6.0%

Previous: 21.0%-71.4%
Livestock Growth

-8.0%

Previous: 0.0%
U.S. Revenue Growth

2.0%

Previous: 7.0%-71.4%
International Revenue Growth

-2.0%

Previous: 18.0%-111.1%
Capital Expenditures

-$415M

Previous: -$309M-34.3%
Free Cash Flow

$114M

Previous: $243M-53.1%
Net Income

$529M

Previous: $552M-4.2%
Operating Income

$700M

Previous: $665M+5.3%
Gross Profit

$1.4B

Previous: $1.4B-0.6%
Cash & Equivalents

$2.51B

Previous: $3.27B-23.4%
Total Assets

$13.7B

Previous: $13.7B-0.2%
Stock-Based Comp

$15M

Previous: $15M+0.0%

Revenue & EPS history

Zoetis · Revenue · Quarterly

$2B

Q3 2022+0.6%vs Q3 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Zoetis · $2B total across 3 segments · Q3 2022

  • Companion Animal
    $1.27B+5.7%
  • Livestock
    $708M-7.7%
  • Contract Mfg & Human Health
    $23M+9.5%

Forward guidance

Zoetis is lowering its full year 2022 guidance to reflect lower than expected sales due to continued supply constraints, veterinary workforce challenges, as well as the negative impact of recent changes to foreign exchange rates.

Tailwinds

  • Revenue between $8.000 billion to $8.075 billion
  • Operational growth 7% to 8%
  • Adjusted cost of sales as a percentage of revenue approximately 30%
  • Adjusted SG&A expenses $1,970 to $2,000 million
  • Adjusted R&D expenses $530 to $540 million

Headwinds

  • Adjusted interest expense and other (income)/deductions-net Approximately $215 million
  • Effective tax rate on adjusted income Approximately 20%
  • Adjusted diluted EPS $4.83 to $4.90
  • Adjusted net income $2,270 to $2,310 million
  • Operational growth 9% to 11%

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 Q3 2022

Historical avgQ3 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

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