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Zoetis Reports Q4 Financial Results, Slightly Beats Revenue Estimates

By Mark Prvulovic - Feb 13, 2020 at 9:20PM

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The world's largest animal-health company reports solid quarterly earnings.

Zoetis (ZTS 1.44%), the animal-health company, reported fiscal fourth-quarter and 2019 full-year financial results Thursday morning. Revenue slightly beat analyst expectations.

Quarterly revenue came in at $1.7 billion, representing 7% growth from Q4 2018. Adjusted net income was $440 million, which breaks down to earnings per share (EPS) of $0.92. Wall Street had expected quarterly revenue of $1.6 billion and EPS of $0.88 -- estimates that Zoetis managed to beat.

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Zoetis' international and U.S. business segments are almost equal in size. The U.S. accounts for $861 million in revenue while the company's international business brought in $791 million. The segments saw a 6% and 9% respective growth rate.

Further details

The animal-based pharmaceutical company also gave 2020 guidance, estimating somewhere between $6.65 billion to $6.8 billion in revenue for the year. Considering that Zoetis reported $6.3 billion in annual revenue for 2019, that's anywhere between a 5.5% to 8% annual growth rate.

That's not a terrible figure, but some investors may be wondering whether the coronavirus is negatively impacting the company's guidance estimates. Zoetis CEO Kristin Peck said in an earnings call with analysts that it's still too early to tell exactly what the financial impact will be.

Despite this, some investors are justifiably concerned, especially since almost half of the company's revenue comes from international markets, with China representing a major portion.

Mark Prvulovic has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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