On February 13, 2025, Zoetis Inc (ZTS, Financial) released its 8-K filing detailing its financial results for the fourth quarter and full year 2024. The company, a leader in animal health products, reported a revenue of $2.3 billion for Q4 2024, marking a 5% increase from the previous year. This performance aligns with the estimated revenue of $2,300.02 million. The net income for the quarter was $581 million, translating to $1.29 per diluted share, which is above the estimated earnings per share (EPS) of $1.24. However, the adjusted diluted EPS was $1.40, surpassing expectations.

Company Overview

Zoetis Inc (ZTS, Financial) is a prominent player in the animal health industry, offering a wide range of products including anti-infectives, vaccines, parasiticides, diagnostics, and other health products for animals. The company generates approximately 35% of its revenue from production animals such as cattle, pigs, and poultry, while 65% comes from companion animal products like those for dogs, horses, and cats. Zoetis holds the largest market share in the industry and was formerly part of Pfizer's animal health unit.

Performance and Challenges

Zoetis Inc (ZTS, Financial) demonstrated strong financial performance in 2024, with a full-year revenue of $9.3 billion, an 8% increase from 2023. The company's net income for the year was $2.5 billion, or $5.47 per diluted share, slightly below the annual estimated EPS of $5.50. However, the adjusted diluted EPS was $5.92, exceeding expectations. The company achieved 11% operational growth in revenue and 15% operational growth in adjusted net income for the year. Despite these achievements, Zoetis faces challenges such as the divestiture of its medicated feed additive product portfolio, which impacted livestock product sales.

Financial Achievements

Zoetis Inc (ZTS, Financial) reported significant financial achievements, including a 9% organic operational growth in revenue for Q4 2024, after accounting for divestitures. The company's U.S. segment revenue increased by 4%, driven by strong sales of companion animal products like Simparica Trio® and Apoquel®. Internationally, revenue grew by 6% on a reported basis and 10% operationally, with companion animal product sales increasing by 11% on a reported basis. These achievements underscore Zoetis's ability to maintain growth despite market challenges.

Key Financial Metrics

Zoetis Inc (ZTS, Financial) reported a gross profit of $1.61 billion for Q4 2024, with a cost of sales amounting to $707 million. Selling, general, and administrative expenses were $625 million, while research and development expenses totaled $186 million. The company's income before provision for taxes on income was $732 million, reflecting a 13% increase from the previous year. These metrics highlight Zoetis's efficient cost management and investment in innovation.

“Zoetis delivered excellent full year results in 2024, driven by the demand for our innovative products and the strength of our key franchises,” said Kristin Peck, Chief Executive Officer of Zoetis.

Analysis and Outlook

Zoetis Inc (ZTS, Financial) has demonstrated resilience and growth in 2024, with strong performance in both the U.S. and international markets. The company's strategic divestitures and focus on high-demand products have contributed to its robust financial results. Looking ahead, Zoetis has provided a full-year 2025 revenue guidance of $9.225 billion to $9.375 billion, with an expected diluted EPS of $5.70 to $5.80 on a reported basis. The company anticipates 6% to 8% organic operational growth in revenue, positioning it for continued success in the animal health industry.

Explore the complete 8-K earnings release (here) from Zoetis Inc for further details.