Movement Alert|Zoetis Falls 5.22% in Regular Trading, Post-Earnings Bounce Quickly Reverses as Steep Guidance Cut Weighs on Sentiment

Market Focus08-08

On August 8, Zoetis fell 5.22% in regular trading, trading at $73.26/share, with turnover of $399 million. The decline comes as the stock rapidly gives back a nearly 7% bounce triggered by a marginal Q2 EPS beat on August 6.

Zoetis reported Q2 adjusted EPS of $1.87, slightly above the $1.86 consensus, while revenue of $2.468 billion missed the $2.502 billion estimate. More critically, the company slashed its full-year adjusted EPS guidance to $6.15–$6.25, far below the prior range of $6.85–$7.00 and the Street estimate of $6.87. Full-year revenue guidance was cut to $9.12–$9.32 billion from $9.68–$9.96 billion. Management cited weaker companion animal demand, reduced veterinary visits, and heightened pet owner price sensitivity. The company indicated it would deploy rebates and point-of-sale programs to defend market share rather than cut list prices. William Blair subsequently downgraded Zoetis to Market Perform from Outperform, adding to selling pressure.

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