Please ensure Javascript is enabled for purposes of website accessibility

Zoetis Reports Q4 Financial Results, Slightly Beats Revenue Estimates

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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

An abstract image of a graph steadily moving up against a background filled with coins.

Image source: Getty Images.

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Zoetis Inc. Stock Quote
Zoetis Inc.
$175.67 (1.44%) $2.49

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/12/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.