Latest news with #ZoetisInc
Yahoo
21-05-2025
- Business
- Yahoo
Jim Cramer on Zoetis (ZTS): 'It Does Seem to Be Dead Money'
We recently published a list of . In this article, we are going to take a look at where Zoetis Inc. (NYSE:ZTS) stands against other stocks that Jim Cramer discussed recently. On Tuesday, Jim Cramer, host of Mad Money, broke down the day's market movements as he pointed to rising bond yields as the main force behind a series of notable shifts in stock performance. 'Every day around here, we have a referendum on stocks, and you can't let it get you down because tomorrow's vote can always be different from today's… Why is it like this?… Well, the answer is a mischievous one.' READ ALSO Jim Cramer's Recent Thoughts on These 15 Stocks and Jim Cramer Put These 12 Stocks Under the Spotlight Cramer offered a broader perspective and explained that on most days, individual stocks respond either to the movements of other stocks or to the overall direction of the market. He said that the market, in turn, often takes its cues from the bond market, which he described as its 'much larger sibling.' On Tuesday, he noted that the bond market heavily influenced stock prices. He highlighted that every downward movement in bond prices, which translates to higher interest rates, was met with negative reactions from the stock market. According to Cramer, such a relationship meant that rising rates handed the advantage to the market bears and tipped the scales in their favor during daily trading. 'So here's the bottom line: The good news is that rates can also go up and not just down by the time we get a budget deal. The bad news is that rates are threatening to break out to the upside. And if they can't stay calm, if they jump to a new, higher level while Congress works on the budget bill, we're liable to have more days like today, where you need a plethora of positive themes for any given stock to break free from the gravitational pull of these darn miserable Treasurys.' For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 20. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey's database of over 1,000 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A veterinarian administering a vaccine to a herd of cattle in a farm. Number of Hedge Fund Holders: 76 Noting that the stock seems to be 'dead money', a caller inquired about Zoetis Inc. (NYSE:ZTS) during the lightning round. In response, Cramer stated: 'It does seem to be dead money. It does seem to, but I still like, look, I've gotta tell you, it is dead money. I'm not going to change my view right here on the fly. I don't see much happening in the veterinary or livestock market at this very moment that's going to help them.' Zoetis (NYSE:ZTS) develops and markets a wide range of animal health products, including medicines, vaccines, diagnostics, and genetic tests. Polen Capital stated the following regarding Zoetis Inc. (NYSE:ZTS) in its Q4 2024 investor letter: 'Zoetis Inc. (NYSE:ZTS) and Adobe were also notable absolute detractors. Zoetis has been posting excellent growth on the back of its pain and dermatology franchises for quite some time, and its core companion animal business has been firing on all cylinders. Despite this, the stock has come under pressure due to concerns about the growth prospects of Librela, its biologic drug for pain in dogs (as well as Solensia, the sister drug for cats). There has been some concern about the side effects of these drugs, but the data disclosed thus far shows a very low level of adverse events, with drugs that prove highly effective in treating pain. We expect strong growth from these and other drugs currently marketed by Zoetis, with more to come from its prolific pipeline. We used the recent weakness to add to our position.' Overall, ZTS ranks 10th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of ZTS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZTS and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
06-05-2025
- Business
- Washington Post
Zoetis: Q1 Earnings Snapshot
PARSIPPANY, N.J. — PARSIPPANY, N.J. — Zoetis Inc. (ZTS) on Tuesday reported first-quarter net income of $631 million. The Parsippany, New Jersey-based company said it had net income of $1.41 per share. Earnings, adjusted for non-recurring costs, came to $1.48 per share.
Business Wire
06-05-2025
- Business
- Business Wire
Zoetis Announces First Quarter 2025 Results
PARSIPPANY, N.J.--(BUSINESS WIRE)-- Zoetis Inc. (NYSE:ZTS) today reported its financial results for the first quarter of 2025 and updated its full year 2025 guidance. The company reported revenue of $2.2 billion for the first quarter of 2025, an increase of 1% compared with the first quarter of 2024. On an organic operational 1 basis, revenue for the first quarter of 2025 increased 9% compared with the first quarter of 2024. Net income for the first quarter of 2025 was $631 million, or $1.41 per diluted share, an increase of 5% and 8%, respectively, on a reported basis. Adjusted net income 2 for the first quarter of 2025 was $662 million, or $1.48 per diluted share, an increase of 4% and 7%, respectively, on a reported basis, and 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. EXECUTIVE COMMENTARY 'Zoetis achieved strong results for the first quarter of 2025, driven by demand for our innovative products and our focus on delivering for our customers. It is a testament to our colleagues' unwavering dedication and excellence in agility that we reported organic operational revenue growth of 9%," said Kristin Peck, Chief Executive Officer of Zoetis. "These results reinforce the essential nature of our business, the strength of our diversified portfolio across markets and species and the preference for our innovative products. While the external environment continues to evolve, we remain agile, disciplined and focused on supporting our customers and the animals in their care while continuing our commitment to deliver value to shareholders.' QUARTERLY HIGHLIGHTS Zoetis organizes and manages its commercial operations across two segments: United States (U.S.) and International. Within these segments, the company delivers a diverse portfolio of products for companion animals and livestock, tailored to local trends and customer needs. In the first quarter of 2025: 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 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. Other contributing factors to growth include diagnostic products, which benefited from a favorable comparative period due to last year's channel strategy change. This was offset by lower vaccine sales as a result of a competitor stock out in the same quarter last year. Sales of livestock products declined 21% in the quarter, largely due to the divestiture of the medicated feed additive (MFA) product portfolio and related assets. On an organic operational basis, sales of livestock products declined 2%. Revenue in the International segment was $1.0 billion, flat on a reported basis and an increase of 11% on an organic operational basis compared with the first quarter of 2024. Sales of companion animal products grew 4% on a reported basis and 10% operationally 3. Growth in the quarter was driven by the company's innovative companion animal products including, parasiticides products Simparica ® and Simparica Trio, key dermatology products Apoquel and Cytopoint, and monoclonal antibodies for OA pain, Librela and Solensia. Sales of livestock products declined 4% on a reported basis, largely due to foreign exchange and the divestiture of the medicated feed additive (MFA) product portfolio and related assets. On an organic operational basis, sales of livestock products increased 12%, driven largely by sales of the company's cattle products in Brazil and other emerging markets, as well as increased vaccine sales in key salmon markets. INVESTMENTS IN GROWTH Zoetis continues to advance innovation and care for animals across the globe. Since its last quarterly earnings announcement, Simparica Trio gained a new label indication in the U.S. to prevent Dipylidium caninum (flea tapeworm) infections by killing Ctenocephalides felis vector fleas in treated dogs. With this approval, Simparica Trio is the only canine combination parasiticide indicated to prevent flea tapeworm infections, at the source, by killing vector fleas before transmission. Simparica Trio also received approval in South Korea. Revolution ® Plus (selamectin/sarolaner), a topical combination product that treats ticks, fleas, ear mites, lice and gastrointestinal worms and prevents heartworm disease in cats, received approval in the U.K. for an additional claim related to efficacy against notoedres mange. On the livestock side of the business, the company received a conditional license for its Avian Influenza Vaccine, H5N2 Subtype, Killed Virus, for use in chickens, in the U.S. and Canada. Zoetis also received approval in the EU and Brazil for Poulvac ® Procerta ® HVT-IBD-ND, a part of the company's recombinant vector vaccine portfolio for poultry, which provides early, robust protection against Marek's, infectious bursal and Newcastle disease viruses with one dose. Poulvac Procerta HVT-IBD, which provides protection against Marek's and infectious bursal viruses, was approved in the U.K. Also in the U.K., Poulvac IB Primer and Poulvac IB QX received approval for an association claim that includes cross protection against 793B and variant 2 strains of infectious Bronchitis virus (IBV) and Suvaxyn ® PRRS MLV received approval for an additional claim related to use in lactating sows. FINANCIAL GUIDANCE Zoetis is updating its full year 2025 guidance. Revenue between $9.425 billion to $9.575 billion (maintains guidance for organic operational growth of 6% to 8%) Reported net income between $2.630 billion to $2.680 billion Adjusted net income between $2.775 billion to $2.825 billion (organic operational growth of 5% to 7%) Reported diluted EPS of $5.85 to $5.95 Adjusted diluted EPS between $6.20 to $6.30 This guidance reflects foreign exchange rates as of late April and the impact of enacted tariffs. Additional details on guidance are included in the financial tables and will be discussed on the company's conference call this morning. WEBCAST & CONFERENCE CALL DETAILS Zoetis will host a webcast and conference call at 8:30 a.m. (ET) today, during which company executives will review first quarter 2025 results, discuss financial guidance and respond to questions from financial analysts. Investors and the public may access the live webcast and corresponding slides by visiting the Zoetis website at A replay of the webcast will be archived and made available on May 6, 2025. About Zoetis As the world's leading animal health company, Zoetis is driven by a singular purpose: to nurture our world and humankind by advancing care for animals. After innovating ways to predict, prevent, detect, and treat animal illness for more than 70 years, Zoetis continues to stand by those raising and caring for animals worldwide – from veterinarians and pet owners to livestock producers. The company's leading portfolio and pipeline of medicines, vaccines, diagnostics and technologies make a difference in over 100 countries. A Fortune 500 company, Zoetis generated revenue of $9.3 billion in 2024 with approximately 13,800 employees. For more information, visit 1 Organic operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange and certain acquisitions and divestitures. 2 Adjusted net income and its components and adjusted diluted earnings per share (non-GAAP financial measures) are defined as reported net income and reported diluted earnings per share, excluding purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items. 3 Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange. DISCLOSURE NOTICES Forward-Looking Statements: This press release contains forward-looking statements, which reflect the current views of Zoetis with respect to: business plans or prospects, future operating or financial performance, future guidance, future operating models; R&D costs; timing and likelihood of success; expectations regarding products, product approvals or products under development and expected timing of product launches; expectations regarding competing products; expectations regarding financial impact of divestitures; disruptions in our global supply chain; expectations regarding the performance of acquired companies and our ability to integrate new businesses; expectations regarding the financial impact of acquisitions; future use of cash, dividend payments and share repurchases; foreign exchange rates, tax rates, tariffs, changes in tax regimes and laws and any changes thereto; and other future events. These statements are not guarantees of future performance or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Zoetis expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our most recent Annual Report on Form 10-K, including in the sections thereof captioned 'Forward-Looking Statements and Factors That May Affect Future Results' and 'Item 1A. Risk Factors,' in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K. These filings and subsequent filings are available online at or on request from Zoetis. Use of Non-GAAP Financial Measures: We use non-GAAP financial measures, such as adjusted net income, adjusted diluted earnings per share, operational results (which exclude the impact of foreign exchange) and organic operational results (which exclude the impact of foreign exchange and certain acquisitions and divestitures), to assess and analyze our results and trends and to make financial and operational decisions. We believe these non-GAAP financial measures are also useful to investors because they provide greater transparency regarding our operating performance. The non-GAAP financial measures included in this press release should not be considered alternatives to measurements required by GAAP, such as net income, operating income, and earnings per share, and should not be considered measures of liquidity. These non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. Reconciliations of non-GAAP financial measures and the most directly comparable GAAP financial measures are included in the tables accompanying this press release and are posted on our website at Internet Posting of Information: We routinely post information that may be important to investors on the 'Investor Relations' section of our website at as well as on LinkedIn, Facebook, X (formerly Twitter) and YouTube. We encourage investors and potential investors to consult our website regularly and to follow us on social media for company news and information. ZTS-COR ZTS-IR ZTS-FIN ZOETIS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a) (UNAUDITED) (millions of dollars, except per share data) Three Months Ended March 31, 2025 2024 % Change Revenue $ 2,220 $ 2,190 1 Costs and expenses: Cost of sales 622 643 (3 ) Selling, general and administrative expenses 563 547 3 Research and development expenses 157 162 (3 ) Amortization of intangible assets 32 37 (14 ) Restructuring charges and certain acquisition and divestiture-related costs — 4 * Interest expense, net of capitalized interest 54 58 (7 ) Other (income)/deductions–net (18 ) (8 ) * Income before provision for taxes on income 810 747 8 Provision for taxes on income 179 148 21 Net income before allocation to noncontrolling interests 631 599 5 Less: Net income/(loss) attributable to noncontrolling interests — — * Net income attributable to Zoetis Inc. $ 631 $ 599 5 Earnings per share attributable to Zoetis—basic $ 1.41 $ 1.31 8 Earnings per share attributable to Zoetis—diluted $ 1.41 $ 1.31 8 Weighted-average shares used to calculate earnings per share Basic 447.6 458.0 Diluted 448.0 458.8 (a) The condensed consolidated statements of income present the three months ended March 31, 2025 and 2024. Subsidiaries operating outside the United States are included for the three months ended February 28, 2025 and February 29, 2024. * Calculation not meaningful. Expand ZOETIS INC. CERTAIN LINE ITEMS (UNAUDITED) (millions of dollars, except per share data) Three Months Ended March 31, 2025 GAAP Reported (a) Purchase Accounting Adjustments Acquisition and Divestiture- Related Costs Certain Significant Items (1) Non-GAAP Adjusted (b) Cost of sales $ 622 $ (1 ) $ — $ (1 ) $ 620 Gross profit 1,598 1 — 1 1,600 Selling, general and administrative expenses 563 (3 ) — (6 ) 554 Research and development expenses 157 — — — 157 Amortization of intangible assets 32 (28 ) — — 4 Restructuring charges and certain acquisition and divestiture-related costs — — — — — Other (income)/deductions–net (18 ) — — 1 (17 ) Income before provision for taxes on income 810 32 — 6 848 Provision for taxes on income 179 7 — — 186 Net income attributable to Zoetis 631 25 — 6 662 Earnings per common share attributable to Zoetis–diluted 1.41 0.06 — 0.01 1.48 Three Months Ended March 31, 2024 GAAP Reported (a) Purchase Accounting Adjustments Acquisition and Divestiture- Related Costs Certain Significant Items (1) Non-GAAP Adjusted (b) Cost of sales $ 643 $ (1 ) $ — $ — $ 642 Gross profit 1,547 1 — — 1,548 Selling, general and administrative expenses 547 (3 ) — — 544 Research and development expenses 162 (1 ) — — 161 Amortization of intangible assets 37 (32 ) — — 5 Restructuring charges and certain acquisition and divestiture-related costs 4 — — (4 ) — Other (income)/deductions–net (8 ) — — (2 ) (10 ) Income before provision for taxes on income 747 37 — 6 790 Provision for taxes on income 148 8 — — 156 Net income attributable to Zoetis 599 29 — 6 634 Earnings per common share attributable to Zoetis–diluted 1.31 0.06 — 0.01 1.38 (a) The condensed consolidated statements of income present the three months ended March 31, 2025 and 2024. Subsidiaries operating outside the United States are included for the three months ended February 28, 2025 and February 29, 2024. (b) Non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP adjusted net income and its components, and non-GAAP adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance. See Notes to Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for note (1). Expand ZOETIS INC. NOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION CERTAIN LINE ITEMS (UNAUDITED) (millions of dollars) (1) Certain significant items include the following: 2025 2024 Other restructuring charges and cost-reduction/productivity initiatives (a) $ — $ 4 Other 6 2 Total certain significant items—pre-tax 6 6 Income taxes (b) — — Total certain significant items—net of tax $ 6 $ 6 (a) For the three months ended March 31, 2024, primarily consisted of employee termination costs related to organizational structure refinements, partially offset by a reversal of certain employee termination costs as a result of a change in strategy from our 2015 operational efficiency initiative, included in Restructuring charges and certain acquisition and divestiture-related costs. (b) Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. Expand ZOETIS INC. ADJUSTED SELECTED COSTS, EXPENSES AND INCOME (a) (UNAUDITED) (millions of dollars) Three Months Ended March 31, % Change 2025 2024 Total Foreign Exchange Operational (b) Divestitures Organic Operational (c) Adjusted cost of sales $ 620 $ 642 (3 )% (10 )% 7 % as a percent of revenue 27.9 % 29.3 % NA NA NA Adjusted SG&A expenses 554 544 2 % (2 )% 4 % Adjusted R&D expenses 157 161 (2 )% — % (2 )% Adjusted net income 662 634 4 % 2 % 2 % (4 )% 6 % (a) Adjusted cost of sales, adjusted selling, general, and administrative (SG&A) expenses, adjusted research and development (R&D) expenses, and adjusted net income (non-GAAP financial measures) are defined as the corresponding reported U.S. GAAP income statement line items excluding purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items. These adjusted income statement line item measures are not, and should not be viewed as, substitutes for the corresponding U.S. GAAP line items. The corresponding GAAP line items and reconciliations of reported to adjusted information are provided in Condensed Consolidated Statements of Income and Reconciliation of GAAP Reported to Non-GAAP Adjusted Information. (b) Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange. (c) Organic operational results (a non-GAAP financial measure) is defined as revenue excluding the impact of foreign exchange and certain acquisitions and divestitures. Expand ZOETIS INC. 2025 GUIDANCE Selected Line Items (millions of dollars, except per share amounts) Full Year 2025 as of May 6, 2025 Full Year 2025 as of February 13, 2025 (Prior Guidance) Revenue $9,425 to $9,575 $9,225 to $9,375 Organic operational growth (a) 6% to 8% 6% to 8% Adjusted cost of sales as a percentage of revenue (b) Approximately 28.5% Approximately 28.0% Adjusted SG&A expenses (b) $2,340 to $2,390 $2,300 to $2,350 Adjusted R&D expenses (b) $690 to $700 $680 to $690 Adjusted interest expense and other (income)/deductions-net (b) Approximately $180 Approximately $200 Effective tax rate on adjusted income (b) Approximately 21% Approximately 21% Adjusted diluted EPS (b) $6.20 to $6.30 $6.00 to $6.10 Adjusted net income (b) $2,775 to $2,825 $2,700 to $2,750 Organic operational growth (a)(c) 5% to 7% 6% to 8% Certain significant items and acquisition and divestiture-related costs (d) Approximately $45 Approximately $30 The guidance as of May 6, 2025 reflects foreign exchange rates as of late April 2025. The prior guidance as of February 13, 2025 reflects foreign exchange rates as of late January 2025. Expand Reconciliations of 2025 reported guidance to 2025 adjusted guidance follows: Cost of sales as a percentage of revenue ~ 28.7% ~ (0.1%) ~ (0.1%) ~ 28.5% SG&A expenses $2,365 to $2,415 ~ $(15) ~ $(10) $2,340 to $2,390 R&D expenses $692 to $702 ~ $(2) $690 to $700 Interest expense and other (income)/deductions-net ~ $180 ~ $180 Effective tax rate ~ 21% ~ 21% Diluted EPS $5.85 to $5.95 ~ $0.10 ~ $0.25 $6.20 to $6.30 Net income attributable to Zoetis $2,630 to $2,680 ~ $45 ~ $100 $2,775 to $2,825 (a) Organic operational results (a non-GAAP financial measure) excludes the impact of foreign exchange and certain acquisitions and divestitures. (b) Adjusted net income and its components and adjusted diluted EPS are defined as reported U.S. GAAP net income and its components and reported diluted EPS excluding purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items. Adjusted cost of sales, adjusted SG&A expenses, adjusted R&D expenses, and adjusted interest expense and other (income)/deductions-net are income statement line items prepared on the same basis, and, therefore, components of the overall adjusted income measure. Despite the importance of these measures to management in goal setting and performance measurement, adjusted net income and its components and adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, adjusted net income and its components and adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Adjusted net income and its components and adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance. Adjusted net income and its components and adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. (c) We do not provide a reconciliation of forward-looking non-GAAP adjusted net income operational results to the most directly comparable U.S. GAAP reported financial measure because we are unable to calculate with reasonable certainty the foreign exchange impact of unusual gains and losses, acquisition and divestiture-related expenses, potential future asset impairments and other certain significant items, without unreasonable effort. The foreign exchange impacts of these items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period. (d) Primarily includes certain nonrecurring costs related to acquisitions, divestitures and other charges. Expand March 31, % Change Revenue: Companion Animal $ 1,546 $ 1,450 7 % (2 )% 9 % — % 9 % Livestock 645 720 (10 )% (5 )% (5 )% (12 )% 7 % Contract Manufacturing & Human Health 29 20 45 % (6 )% 51 % — % 51 % Total Revenue $ 2,220 $ 2,190 1 % (4 )% 5 % (4 )% 9 % U.S.: Companion Animal $ 973 $ 898 8 % — % 8 % — % 8 % Livestock 210 265 (21 )% — % (21 )% (19 )% (2 )% Total U.S. Revenue $ 1,183 $ 1,163 2 % — % 2 % (4 )% 6 % International: Companion Animal $ 573 $ 552 4 % (6 )% 10 % — % 10 % Livestock 435 455 (4 )% (8 )% 4 % (8 )% 12 % Total International Revenue $ 1,008 $ 1,007 — % (7 )% 7 % (4 )% 11 % Companion Animal: Dogs and Cats $ 1,481 $ 1,384 7 % (2 )% 9 % Horses 65 66 (2 )% (4 )% 2 % Total Companion Animal Revenue $ 1,546 $ 1,450 7 % (2 )% 9 % Livestock: Cattle $ 358 $ 391 (8 )% (5 )% (3 )% Swine 111 127 (13 )% (6 )% (7 )% Poultry 106 139 (24 )% (4 )% (20 )% Fish 53 45 18 % (3 )% 21 % Sheep and other 17 18 (6 )% (6 )% — % Total Livestock Revenue $ 645 $ 720 (10 )% (5 )% (5 )% (a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. (b) Operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange. (c) Organic operational results (a non-GAAP financial measure) is defined as revenue excluding the impact of foreign exchange and certain acquisitions and divestitures. Expand ZOETIS INC. CONSOLIDATED REVENUE BY KEY INTERNATIONAL MARKETS (UNAUDITED) (millions of dollars) Three Months Ended March 31, % Change 2025 2024 Total Foreign Exchange Operational (a) Total International $ 1,008 $ 1,007 — % (7 )% 7 % Australia 75 73 3 % (5 )% 8 % Brazil 88 101 (13 )% (19 )% 6 % Canada 67 61 10 % (7 )% 17 % Chile 34 31 10 % (1 )% 11 % China 60 76 (21 )% (1 )% (20 )% France 40 41 (2 )% (4 )% 2 % Germany 51 51 — % (4 )% 4 % Italy 29 28 4 % (5 )% 9 % Japan 36 37 (3 )% (5 )% 2 % Mexico 37 44 (16 )% (15 )% (1 )% Spain 33 32 3 % (4 )% 7 % United Kingdom 77 77 — % (1 )% 1 % Other developed markets 133 127 5 % (6 )% 11 % Other emerging markets 248 228 9 % (8 )% 17 % (a) Operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange. Note: operational revenue results are not reflective of organic operational results. Expand ZOETIS INC. SEGMENT (a) EARNINGS (UNAUDITED) (millions of dollars) Three Months Ended March 31, % Change 2025 2024 Total Foreign Exchange U.S.: Revenue $ 1,183 $ 1,163 2 % — % 2 % Cost of Sales 199 217 (8 )% — % (8 )% Gross Profit 984 946 4 % — % 4 % Gross Margin 83.2 % 81.3 % Operating Expenses 205 190 8 % — % 8 % Other (income)/deductions-net — — — % — % — % U.S. Earnings $ 779 $ 756 3 % — % 3 % International: Revenue $ 1,008 $ 1,007 — % (7 )% 7 % Cost of Sales 302 313 (4 )% (14 )% 10 % Gross Profit 706 694 2 % (4 )% 6 % Gross Margin 70.0 % 68.9 % Operating Expenses 154 159 (3 )% (7 )% 4 % Other (income)/deductions-net 1 — * * * International Earnings $ 551 $ 535 3 % (4 )% 7 % Total Reportable Segments $ 1,330 $ 1,291 3 % (2 )% 5 % Other business activities (c) (129 ) (132 ) (2 )% Reconciling Items: Corporate (d) (271 ) (288 ) (6 )% Purchase accounting adjustments (e) (32 ) (37 ) (14 )% Certain significant items (f) (6 ) (6 ) — % Other unallocated (g) (82 ) (81 ) 1 % Total Earnings (h) $ 810 $ 747 8 % (a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. (b) Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange. (c) Other business activities includes the research and development costs managed by our research and development organization, as well as our contract manufacturing business and human health business. (d) Corporate includes, among other things, certain costs associated with information technology, administration expenses, interest income and expense, certain compensation costs and other costs not charged to our operating segments. (e) Purchase accounting adjustments include certain charges related to the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment not charged to our operating segments. (f) Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with cost-reduction/productivity initiatives that are not associated with an acquisition, as well as a loss on assets held for sale and the impact of divestiture gains and losses. (g) Includes overhead expenses associated with our global manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs. (h) Defined as income before provision for taxes on income. * Calculation not meaningful. Expand
Yahoo
08-04-2025
- Business
- Yahoo
Zoetis Inc. (ZTS): Among Stocks with Buy Ratings that Hedge Funds Love
We recently published a list of . In this article, we are going to take a look at where Zoetis Inc. (NYSE:ZTS) stands against other stocks with buy ratings that hedge funds love. The U.S. stock market has been in chaos ever since President Trump announced his intent to increase tariffs on the U.S.'s trading partners. On April 2, 2025, the President officially presented the new tariff rates, calling them reciprocal tariffs. Since the presentation, the value of the U.S. stock market has started plunging. Though these tariffs have led to bloodbaths in many exchanges across the globe, the impact is heavy in the U.S. market where it originated. China, one of the largest trading partners of the U.S., retaliated against the new tariff by slapping a 34% levy on U.S. goods, thus igniting a global trade war. The result? A $9 trillion wipeout in U.S. equity markets, according to CNBC. Experts are calling it the worst weekly performance since the COVID-19 crash. READ ALSO: . Retail investors are scrambling for the exits to protect their investments. However, hedge funds are quietly loading up on bargains. Analysts are perceiving an opportunity in the turmoil, and institutional investors are using the downturns to pepper their portfolios with high-conviction stocks at fire-sale prices. Right now, their buy lists are flashing green. They do not back the stocks unquestioningly, however, they look at the fundamentals, pricing power, and growth trends of the stocks to estimate their ability to outlast the storm. If there is one thing we can learn from history, it is that markets often make their most significant rebounds after their steepest declines. When discussing the significance of virtues like patience and calmness in an investor during turmoil, a billionaire investor quoted a 19th-century poem: 'If you can keep your head when all about you are losing theirs… yours is the Earth and everything in it.' His point? Panic is expensive. On the other hand, opportunity can be priceless when accumulating institutional interest signals to investors where to look. This brings us to the heart of our article today. Combining hedge fund filings, analyst upgrades, and real-time market data, we have uncovered 15 stocks with Buy ratings, which could potentially refine your portfolio. Top hedge funds are piling into these stocks, making them more appealing to investors interested in generating income. But don't just take our word for it. History has given us a few examples to consider before making investment decisions. For instance, the 2020 pandemic crash is a prime example of how hedge fund portfolios can be better performers than the market index. Following the crash, hedge fund-backed stocks outperformed the market indexes by 14% in 2021. It indicates that institutional conviction can be louder than the market's noise. We put together our list of 15 stocks by primarily considering the Buy ratings of the stocks. Our list included only those stocks with a strong Buy rating, as we see it as a crucial component for investors to make informed decisions. Another factor we considered was the hedge fund sentiment toward these stocks, according to Insider Monkey's Q4 2024 database. It indicated the level of institutional interest in the stock. The value of hedge funds has also been used to rank the stocks on our list, with the top stock having the highest value of hedge funds. Additionally, we filtered our list by excluding stocks with negative earnings per share (EPS) over the past five years. We regarded those stocks with a positive EPS since it reflects consistency in profitability. All the data used in the article were taken from financial databases and analyst reports, with all information current as of April 5, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A veterinarian administering a vaccine to a herd of cattle in a farm. Zoetis Inc. (NYSE:ZTS) is a global leader in animal health. Headquartered in New Jersey, the company manufactures vaccines, medicines, diagnostics, and genetics products for pets and livestock. Zoetis serves veterinarians, farmers, and pet owners in over 100 countries and uses decades of research to find solutions for emerging diseases. Against tough competitors like Elanco, the company obtains market through its strong innovation engine and digital tools for animal health monitoring and precision care. Zoetis Inc. (NYSE:ZTS) has attracted strong hedge fund backing, with 76 funds holding $2.46 billion in shares, according to Insider Monkey's Q4 2024 database. A strong demand for the products in 2024 enabled the company to achieve a double-digit operational revenue growth of 11%. The Simparica and OA pain franchises contributed to a 14% increase in revenue in the companion animal portfolio of Zoetis. The newly launched Librela in the U.S. also positively affected the revenue. Much of the positive expectations for the company are centered around its guidance for 2025, which anticipates revenue between $9.225 billion and $9.375 billion. Zoetis Inc. (NYSE:ZTS)'s EPS for the past five years has grown by 11.91%, indicating elevated business and financial performance. The growth further reinforces analysts' confidence, managing to secure a Strong Buy rating for the stocks. Overall, ZTS ranks 7th on our list of stocks with buy ratings that hedge funds love. While we acknowledge the potential for ZTS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ZTS but trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
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02-03-2025
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Is Zoetis Inc. (ZTS) the Best Weight Loss Drug Stock to Buy According to Analysts?
We recently published a list of . In this article, we are going to take a look at where Zoetis Inc. (NYSE:ZTS) stands against other best weight loss drug stocks to buy according to analysts. Most people have tried to include fitness and weight loss into their everyday routines. Due to the immediate physical and psychological benefits of increasing one's fitness, the weight loss and fitness sector is rather large globally. The WHO estimates that over one billion individuals worldwide—650 million adults, 340 million adolescents, and 39 million children—are obese. A brand-new class of weight-loss drugs that don't require rigorous diets or exercise routines appears to be ground-breaking. These innovative drugs can help people who are overweight or obese shed 15% to 20% of their body weight. According to Andy Acker, portfolio manager at Janus Henderson Investors, 'This may be the largest opportunity we've ever seen in the pharmaceutical industry.' Medication for weight loss is very popular. Investors are comparing the US top in weight-loss medications with the leading in artificial intelligence chips. Morgan Stanley Research has increased its prediction for the global market for obesity medications from $77 billion to $105 billion by 2030 in light of this demand increase. In 2023, brand-name obesity drugs brought in almost $6 billion. According to Forbes, Semaglutide, a market leader for obesity drugs and the generic version of Ozempic, Wegovy, and Rybelsus, was the most prescribed Glucagon-Like Peptide-1 GLP-1 agonist in 2023. Nearly 88% of all new prescriptions were for it. Tirzepatide, Liraglutide, and Semaglutide are the only three GLP-1 weight-control drugs currently approved by the FDA. According to JP Morgan Research, obesity and diabetes will drive the GLP-1 market's growth to $100 billion by 2030. By that year, there may be 30 million GLP-1 users in the US or around 9% of the total population. Increased demand for obesity medications will benefit some industries, such as biotech, while posing problems for others, such as the food and beverage sector. Chris Schott, a Senior Analyst with expertise in the U.S. Diversified Biopharma sector, claims: 'GLP-1s have been used to treat T2D since 2005, starting with the approval of Byetta, with follow-on products continually improving on efficacy. The most recent, Ozempic and Mounjaro, offer significant advantages over previous products and have accelerated class growth,' 'Indeed, the newest generations of GLP-1s and combos lead to 15-25+% weight loss on average, well above prior generations of products.' The latest generation of GLP-1 medications are being hailed by some as 'miracle drugs' that can cure obesity. However, not all obese persons can utilize GLP-1s due to their high cost and restricted insurance coverage. At the current rate, treating 40% of obese Americans would cost more than $1 trillion annually, according to Jonathan Gruber, an economics professor and the chairman of MIT's economics department. That is nearly equal to what the government spends on Medicare as a whole. That is a startling amount. The usage of GLP-1 drugs, such as semaglutide, for weight loss has increased over the past decade, whereas among those with type 2 diabetes, it has decreased by roughly 10%, per a report published in the Annals of Internal Medicine. The prolonged medicine shortage that results could restrict diabetics' access to the treatments, the experts caution. As the need for obesity drugs rises, it is imperative to guarantee that diabetic patients have access to GLP-1 medicines, stressed Dr. Yee Hui Yeo, a clinical fellow in Cedars-Sinai's Karsh Division of Gastroenterology and Hepatology. The FDA says the shortages are a result of rising demand. The GLP-1 medication scarcity is a 'major public health concern' that is unlikely to be addressed in 2024, according to the European Medicines Agency, suggesting that the shortages are not limited to the US. NPR reports that some people with diabetes have had to cut back on the number of drugs they can take due to shortages that have made it difficult for them to have their prescriptions filled. Julia Angeles of Baillie Gifford, Debra Netschert of Jennison Investments, and Gentry Lee of Fayez Serofim were among the panelists on 'Weighing the Future of Obesity Drugs,' which discussed the potential of GLP-1 medications, which were initially developed to treat diabetes but are now being used to treat obesity. The evolution of GLP-1 medication delivery from weekly dosages to several daily injections was also noted by Netschert, who also emphasized current attempts to further reduce injection frequency and minimize adverse effects. Notwithstanding their remarkable effectiveness, 1.5 million of the 110 million eligible patients in the US are currently undergoing treatment with GLP-1 drugs, according to Netschert, because of supply constraints. In their dispute over who should pay, Angeles claimed that the majority of patients paid cash, while Netschert cited large insurance and Medicare/Medicaid reimbursements. Up to 700 million individuals worldwide may need these drugs outside of the United States, according to Netschert. Notably, the panel discovered that the UK had the fastest approval rate of GLP-1 drugs of any nation, demonstrating the recognized worth of these drugs. In general, UK payors are strict. For this article, we selected stocks that demonstrated over 10% analyst upside, had a market cap above $2 billion and were backed by strong institutional ownership. We then ranked these stocks based on their price target upside. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A veterinarian administering a vaccine to a herd of cattle in a farm. Price Target Upside: 35.24% Zoetis Inc. (NYSE:ZTS) is a global animal health company that focuses on the discovery, development, manufacture, and commercialization of vaccines, medicines, biodevices, genetic tests, diagnostic products, and precision animal health. It stands third among the best weight loss drugs to buy according to analysts. Zoetis Inc. (NYSE:ZTS) is addressing pet obesity through various products and initiatives. For dogs, it developed Slentrol (dirlotapide), the first FDA-approved medication for canine obesity. This drug works by reducing appetite and food intake, with studies showing a mean weight loss of 11.8% over four months. For cats, the company offers products like CliniCare RF Feline Liquid Diet with renal impairment and Rebound Recuperation Formula, a low-calorie liquid supplement to support healthy eating during recovery. Zoetis Inc. (NYSE:ZTS) has also developed diagnostic tools like Vetscan Imagyst, an AI-powered system to monitor pets' health during weight loss programs. The corporation promotes pet owner education through initiatives like BARC (Body Assessment Rating for Canines) and encourages communication with veterinarians about weight management. Ongoing research and development efforts are focused on advancing pet health solutions. Zoetis Inc. (NYSE:ZTS) had a strong financial year, with a total revenue of $9.3 billion, reflecting an 8% increase overall and 11% growth in operational revenue. The companion animal portfolio saw significant growth, especially with products like Simparica and Librela. Revenue from livestock also increased, which was driven by innovative vaccines and solutions. The company's profitability improved, with adjusted net income rising 10% to $2.7 billion. Key drivers of growth included popular treatments for pet arthritis and skin conditions, as well as a strong performance in the U.S. and international markets. Looking ahead, Zoetis Inc. (NYSE:ZTS) expects continued growth in 2025, with revenue and net income projected to increase by 6% to 8%. Overall, ZTS ranks 3rd on our list of best weight loss drug stocks to buy according to analysts. While we acknowledge the potential of ZTS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ZTS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
