Zoetis Posts Upbeat Q1 Earnings, But Lowers FY15 Forecast

reported better-than-expected earnings for the first quarter, but the company cut its outlook for 2015. The Florham Park, New Jersey-based company posted a quarterly profit of $165 million, or $0.33 per share, versus a year-ago profit of $155 million, or $0.31 per share. Excluding items, the company earned $0.41 per share. Its revenue came in flat at $1.1 billion. However, analysts were expecting earnings of $0.37 per share on revenue of $1.11 billion. The average estimate among 4 Estimize users was for earnings of $0.38 per share and revenue of $1.12 billion. Revenue in the U.S. rose 9 percent to $521 million, while revenue in EuAfME came in operationally flat at $237 million. Revenue in CLAR rose 13 percent operationally to $173 million, while revenue in APAC gained 1 percent to $161 million in the latest quarter. "For the first quarter, we continued our solid financial performance from last year," said Zoetis Chief Executive Officer Juan Ramón Alaix. "Our first quarter revenue grew 6% operationally, based on strength in the U.S. and Latin American markets, and our adjusted net income grew 14% operationally, in line with our objective to grow adjusted net income faster than sales." For 2015, Zoetis now projects revenue of $4.675 billion to $4.775 billion, versus its earlier outlook of $4.8 billion to $4.9 billion. The company expects earnings of $0.79 to $1.02 per share, versus prior forecast of $1.32 to $1.39 per share. It backed its adjusted EPS forecast. For 2017, the company expects adjusted earnings of $2.18 to $2.32 per share, on revenue of $4.850 billion to $5.050 billion. The company also announced its plans to lower costs by $300 million by 2017. Zoetis shares gained 2.42 percent to $46.50 in pre-market trading.