By Nate Wolf
Shares of Zoetis slumped Tuesday after the animal healthcare company reported weaker-than-expected quarterly revenue and slashed its full-year outlook.
The company posted adjusted earnings of $1.70 a share for the third quarter, above analysts' consensus estimates of $1.62. Revenue totaled $2.4 billion, up 1% from the prior year but narrowly below Wall Street's call for $2.41 billion.
While revenue for companion animal products -- those meant for dogs, cats, and horses -- rose 3% from last year, livestock revenue dropped 4%. Zoetis saw a particularly steep decline in revenue for its swine and poultry medicines.
Zoetis shares fell 13% to $125.83 in premarket trading Tuesday. The stock was on pace for its lowest close since May 13, 2020, in the depths of the Covid-19 pandemic, according to Dow Jones Market Data.
The company lowered its 2025 revenue guidance, citing "broader macro trends and operational environment in the back half of the year." Revenue is expected at between $9.4 billion and $9.475 billion, down from a previous forecast of $9.45 billion to $9.6 billion. The company held its adjusted earnings guidance steady at $6.30 to $6.40 a share, however.
Zoetis' disappointing print follows a strong third-quarter report from veterinary medicine competitor Idexx Laboratories, which focuses more on diagnostics. Idexx stock was down 0.4% in premarket trading Tuesday after rising 15% to an all-time high Monday.
Write to Nate Wolf at nate.wolf@barrons.com
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(END) Dow Jones Newswires
November 04, 2025 08:59 ET (13:59 GMT)
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