What happened
The shares of animal health specialist Zoetis (ZTS 3.40%) trotted merrily ahead this week, rising at an 8.7% pace over the period, according to data compiled by S&P Global Market Intelligence. Investors patted the head of the company after it delivered an earnings report that featured rather promising guidance.
So what
On Valentine's Day -- Tuesday, in other words -- Zoetis unveiled its fourth-quarter and full-year 2022 results.
For the former period, the niche healthcare company booked revenue of $2 billion, which was 4% higher on a year-over-year basis. Non-GAAP (adjusted) net income saw a more dramatic jump, leaping 15% skyward to hit $539 million ($1.15 per share).
In the earnings release, Zoetis quoted its CEO Kristin Peck as saying that the growth was "driven by our innovative companion animal franchises across parasiticides, dermatology and pain."
Peck added that the company also achieved this "while continuing to support investments in [research and development], manufacturing capacity, and sales and marketing efforts that will drive future growth."
Now what
While both quarterly headline figures were basically in line with analyst estimates, the story was different with guidance.
For the entirety of 2023, Zoetis is modeling revenue of nearly $8.58 billion to slightly over $8.72 billion, which would represent growth of at least 6% from the 2022 result. The company is also anticipating similar improvement on the bottom line, with projected adjusted net income of $2.49 billion to $2.54 billion ($5.34 to $5.44 per share), shaking out to a 7% to 9% improvement.
Both ranges exceed the average analyst estimates of $8.57 billion for revenue and $5.33 for adjusted, per-share net income.
