Business

ZTS Stock Plunges as Third Quarter Miss Leads Guide Pruning


Zoetis (ZTS) hacked more than $200 million above the full-year outlook on Thursday, and investors sent ZTS stock to a two-year low.




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This year, the animal health giant projects revenue between $8 and $8,075 billion. Three months ago, Zoetis expected revenue of at least $8.225 billion.

“While we remain confident in the strength and growth momentum of our business, we are reducing our 2022 guidance to reflect lower-than-expected sales in the second half of the consecutive year.” regarding continued supply constraints, veterinary workforce challenges and recent changes to foreign exchange,” Chief Executive Officer Kristin Peck said in a written statement.

In the morning, trade on stock market today, ZTS shares fell 14.6%, trading near 125.80. That leaves their shares at their lowest level since May 2020.

ZTS Stock: Earnings Fall More Than Expected

In the September quarter, Zoetis adjusted earnings fell more than 3% to $1.21 per share. That lagged ZTS stock analysts’ call at $1.24. According to FactSet, revenue inched more than 1% to $2 billion, but fell short of expectations of $2.08 billion.

Across geographies, Zoetis’ livestock revenue declined. Overall, those sales fell 8% to $708 million. Pet sales continued to grow, growing 6% globally to $1.27 billion.

Zoetis noted that it is facing a joint version of Draxxin and Zoamix. Draxxin treats respiratory diseases in cattle while Zoamix prevents and treats some parasites in chickens. Worldwide, sales of pig products have declined due to supply problems.

In addition to a lower sales outlook, Zoetis also cut its earnings outlook to $4.83 to $4.90 a share, on an adjusted basis. ZTS equity analysts expect $4.99 per share. Three months ago, Zoetis predicted $4.97 to $5.05 per share.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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