NYSE$ZTS

Zoetis · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported an 11% increase in revenue and a 14% increase in net income for Q3 2024.

Zoetis reported strong Q3 2024 results, with revenue reaching $2.4 billion, an 11% increase compared to Q3 2023. Net income grew by 14% to $682 million, and adjusted net income increased by 15%. The company has raised its full-year 2024 revenue and adjusted EPS guidance, reflecting confidence in its diverse portfolio and market leadership.

  • Revenue reached $2.4 billion, growing 11% overall and 14% operationally.
  • Net income increased by 14% to $682 million, or $1.50 per diluted share.
  • U.S. revenue grew by 15%, driven by companion animal products.
  • International revenue increased by 13% operationally, with growth in both companion animal and livestock products.

Headline financials

Total Revenue

$2.39B

Previous: $2.15B+11.0%
EPS

$1.50

Previous: $1.36+10.3%
Companion Animal Growth

0.0%

Previous: 11.0%-100.0%
Livestock Growth

0.0%

Previous: 3.0%-100.0%
U.S. Revenue Growth

0.0%

Previous: 8.0%-100.0%
International Revenue Growth

0.0%

Previous: 8.0%-100.0%
Capital Expenditures

-$439M

Previous: -$534M+17.8%
Free Cash Flow

$243M

Previous: $62M+291.9%
Net Income

$682M

Previous: $596M+14.4%
Operating Income

$851M

Previous: $723M+17.7%
Gross Profit

$1.69B

Previous: $1.51B+11.5%
Cash & Equivalents

$1.71B

Previous: $1.75B-2.3%
Total Assets

$14.4B

Previous: $14.1B+1.8%
R&D Expense

$167M

Previous: $152M+9.9%
Stock-Based Comp

$18M

Previous: $17M+5.9%

Revenue & EPS history

Zoetis · Revenue · Quarterly

$2.39B

Q3 2024+11%vs Q3 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Zoetis · $2.15B total across 3 segments · Q3 2023

  • Companion Animal
    $1.41B+11.3%
  • Livestock
    $716M+1.1%
  • Contract Mfg & Human Health
    $21M-8.7%

Forward guidance

Zoetis raises its full year 2024 guidance for revenue to $9.2 - $9.3 billion, representing operational growth of 10% to 11%, with adjusted diluted EPS of $5.86 to $5.92. The company updates full year operational growth in adjusted net income to 13.5% to 14.5%.

Tailwinds

  • Revenue between $9.200 billion to $9.300 billion (operational growth of 10% to 11%)
  • Adjusted net income between $2.670 billion to $2.695 billion (operational growth of 13.5% to 14.5%)
  • Adjusted diluted EPS between $5.86 to $5.92
  • Strong first three quarters
  • Underlying strength in companion animal

Headwinds

  • Guidance reflects foreign exchange rates as of mid-October.
  • Certain significant items and acquisition and divestiture-related costs: $126 - $136 million
  • Adjusted interest expense and other (income)/deductions-net: Approximately $190 million
  • Effective tax rate on adjusted income: 20.0% to 20.5%
  • Adjusted cost of sales as a percentage of revenue: Approximately 29.3%

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 2024

Historical avgQ3 2024

+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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