Zoetis Beats Wall Street Estimates, Revises 2025 Guidance To Include Tariffs Impact

Animal health firm Zoetis Inc ZTS on Tuesday reported a first-quarter 2025 adjusted EPS of $1.48, up from $1.38 a year ago, beating the consensus of $1.39.

Adjusted net income for the first quarter of 2025 was $662 million, or $1.48 per diluted share. That’s an increase of 6% and 8%, respectively, on an organic operational basis.

Adjusted net income for the first quarter of 2025 excludes the net impact of $31 million for purchase accounting adjustments, acquisition and divestiture-related costs, and certain significant items.

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The company reported sales of $2.22 billion, up 1% year over year, beating the consensus of $2.19 billion.

On an organic operational basis, revenue for the first quarter of 2025 increased 9% compared with the first quarter of 2024.

Revenue in the U.S. segment was $1.2 billion, an increase of 2% compared with the first quarter of 2024 and an increase of 6% on an organic operational basis.

Sales of companion animal products increased by 8%, driven by Simparica Trio, the company’s flea tick and heartworm combination product, key dermatology products Apoquel and Cytopoint, and monoclonal antibody (mAb) products for osteoarthritis (OA) pain, Librela for dogs and Solensia for cats.

Guidance: Zoetis raised its fiscal 2025 revenues guidance from $9.225 billion – $9.375 billion to  $9.425 billion – $9.575 billion, compared to the consensus of $9.33 billion.

The company maintains an organic operational growth of 6% to 8%. It expects a reported net income of $2.630 billion—$2.68 billion, compared to prior guidance of $2.57 billion – $2.62 billion.

The animal company raised its adjusted net income guidance to $2.775 billion – $2.825 billion from $2.70 billion and $2.75 billion, with organic operational growth of 6% to 8% (compared to 5% – 7% earlier).

Zoetis forecasts a reported EPS of $5.85 to $5.95 compared to prior guidance of $5.70-$5.80 and adjusted EPS of $6.20-$6.30 from between $6.00 and $6.10, compared to a consensus of $6.09.

The company says the guidance reflects foreign exchange rates as of late April and the impact of enacted tariffs.

Price Action: ZTS stock is down 1.11% at $156.30 during the premarket session at the last check Tuesday.

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