Zoetis Inc. (ZTS), the leading animal healthcare company, experienced a sharp decline of 8.16% in its stock price during the pre-market trading session on Thursday. The plummet was primarily driven by the company's underwhelming guidance for the year 2025, which fell short of Wall Street's expectations.
In its fourth-quarter earnings report, Zoetis forecasted its adjusted earnings per share (EPS) for 2025 to be in the range of $6.00 to $6.10, missing analysts' average estimate of $6.29. Additionally, the company projected its full-year revenue for 2025 to be between $9.23 billion and $9.38 billion, lower than the consensus estimate of $9.57 billion.
The disappointing outlook was attributed to several factors, including the impact of a stronger U.S. dollar and the divestiture of certain product portfolios, such as the medicated feed additive product line and certain water-soluble products, which were sold to Phibro Animal Health for $350 million. These divestitures had a slightly larger impact than initially anticipated, according to J.P. Morgan analyst Chris Schott.
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