Animal health giant Zoetis (NYSE:ZTS), which was spun off from Pfizer last year, reported steady growth in the fourth quarter before the opening bell this morning, but left a lot to be desired with its projected 2014 outlook.
For the quarter, Zoetis saw revenue rise 9% on an operational basis (7% when adjusted for negative currency translation) to $1.254 billion as adjusted net income, which excludes one-time gains and expenses, more than tripled to $0.36 per share from $0.11 in the year-ago period.
Zoetis' top-line results were strong across all four of its geographic regions.
U.S. revenue rose 7% to $516 million thanks to an 8% increase in livestock sales during the quarter and a 5% boost in companion health revenue. Cattle products were cited as the primary catalyst here with new product growth in swine and poultry also adding to growth.
Its Europe/Africa/Middle East segment delivered $330 million in sales, up 9% on an operational basis, as swine and poultry product sales in Germany and Russia boosted livestock sales by 9%. Its Eu/Af/ME segment also saw more robust companion sales growth of 9% relative to the United States.
Canada and Latin American revenue improved 8% on an operational basis to $223 million driven primarily by cattle product sales in Brazil. Keeping with the theme of robust companion product sales growth, its CLAR segment produced 14% operational growth thanks largely to Brazil and Canada.
Finally, Asia/Pacific revenue increased 14% on an operational basis to $185 million as livestock products jumped 16%. The primary catalyst was swine, poultry and cattle products in China, India and Japan. Companion animal products grew by 8% on an operational basis in this region.
Looking ahead, though, Zoetis' full-year 2014 guidance pointed toward slowing growth. Full-year revenue projections in 2014 of $4.65 billion-$4.75 billion represents just 3% EPS growth at the midpoint from today's full-year results, while its adjusted EPS forecast of $1.48-$1.54 is well below the $1.61 projected by S&P Capital IQ.
Shares of Zoetis were down in midday trading by nearly 6%.
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