
Zoetis Fares Better Than Rival IDEXX in 3Q23 With Solid Companion Animal Growth
11-2-23 (by: Scott Gleason) Zoetis has released its third-quarter 2023 financial results reporting total revenue of $2.2 billion for the third quarter of 2023, representing a 7% increase compared to the same period in 2022. Street forecasts called for revenue of $2.18 billion.
The company’s companion animal portfolio grew 11% operationally, driven by our major franchises in dermatology, pet parasiticides, osteoarthritis pain, and diagnostics. Diagnostic products in the company’s companion animal group grew an impressive 14% compared to IDEXX’s 9% growth. Management noted on the call that U.S. vet visits declined slightly but revenue per visit increased. IDEXX cited a 2% decline in same-store-sales on its earnings call.
The company’s livestock portfolio grew 3% operationally, driven by sales of poultry and cattle products.
U.S. revenue of $1.174 billion increased 8% compared to the previous year with companion animal product growth of 11%. In the International segment, Zoetis reported revenue of $956 million, reflecting an 8% increase.
Adjusted net income was $629 million, translating to $1.36 per diluted share an 11% increase year-over-year. Adjusted EPS were in line with consensus forecasts.
Zoetis updated its full-year guidance for 2023 calling for revenues of $8.475 billion to $8.550 billion, and narrowing its operational growth to a range of 6.5% to 7.5%. Adjusted net income is estimated to be in the range of $2.490 billion to $2.515 billion, with operational growth falling between 7.5% and 8.5% with adjusted diluted earnings per share expected to be in the range of $5.38 to $5.43.
Kristin Peck, Chief Executive Officer of Zoetis, commented on these strong financial results, saying, “Today we reported strong third-quarter results of 8% operational growth in revenue and 13% operational growth in adjusted net income, based on our diverse portfolio across markets and species. We showed balanced segment growth again this quarter, with 8% revenue growth in the U.S. and 8% operational revenue growth internationally.”