NYSE$ZTS

Zoetis · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Zoetis reported a revenue increase of 9% and a net income increase of 15% for Q4 2021.

Zoetis reported Q4 2021 revenue of $2.0 billion, a 9% increase compared to Q4 2020. Net income for Q4 2021 was $414 million, a 15% increase. Adjusted net income was $474 million, an 8% increase.

  • Revenue in the U.S. segment was $1.040 billion, an increase of 9% compared with the fourth quarter of 2020.
  • Sales of companion animal products increased 20%, driven by growth across the company’s parasiticides portfolio, including Simparica Trio® for dogs.
  • Revenue in the International segment was $902 million, an increase of 8% on a reported and operational basis compared with the fourth quarter of 2020.
  • Sales of companion animal products increased 22% on a reported basis and 23% operationally.

Headline financials

Total Revenue

$1.97B

Previous: $1.81B+8.9%
EPS (adj)

$1.00

Previous: $0.91+9.9%
Companion Animal Growth

21.0%

Previous: 25.0%-16.0%
Livestock Growth

-6.0%

Previous: -5.0%-20.0%
U.S. Revenue Growth

9.0%

Previous: 11.0%-18.2%
International Revenue Growth

8.0%

Previous: 7.0%+14.3%
Capital Expenditures

$168M

Previous: $152M+10.5%
Free Cash Flow

$511M

Previous: $566M-9.7%
Net Income

$414M

Previous: $359M+15.3%
Operating Income

$506M

Previous: $420M+20.5%
Gross Profit

$1.37B

Previous: $1.21B+13.3%
Cash & Equivalents

$3.49B

Previous: $3.6B-3.3%
Total Assets

$13.9B

Previous: $13.6B+2.1%
Stock-Based Comp

$14M

Previous: $13M+7.7%

Revenue & EPS history

Zoetis · Revenue · Quarterly

$1.97B

Q4 2021+8.9%vs Q4 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Zoetis · $1.97B total across 3 segments · Q4 2021

  • Companion Animal
    $1.18B+20.9%
  • Livestock
    $760M-5.7%
  • Contract Mfg & Human Health
    $25M+8.7%

Forward guidance

Zoetis is providing full year 2022 guidance, which includes revenue between $8.325 billion to $8.475 billion, reported diluted EPS between $4.75 to $4.87, and adjusted diluted EPS between $5.09 to $5.19.

Tailwinds

  • Revenue between $8.325 billion to $8.475 billion
  • Operational growth of 9% to 11%
  • Adjusted cost of sales as a percentage of revenue approximately 29%
  • Adjusted SG&A expenses between $2.070 to $2.120 billion
  • Adjusted R&D expenses between $540 to $560 million

Headwinds

  • Foreign exchange impact on revenue of approximately $(160) million
  • Foreign exchange impact on Adjusted SG&A expenses of approximately $(30) million
  • Foreign exchange impact on Adjusted R&D expenses of approximately $(5) million
  • Adjusted interest expense and other (income)/deductions-net approximately $240 million
  • Effective tax rate on adjusted income approximately 20%

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 Q4 2021

Historical avgQ4 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

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