By Kit Norton
Shares of Zoetis plummeted Thursday, after the animal-health company's results missed Wall Street expectations and cut its full-year guidance.
Zoetis stock sank 20% to $88.94 on Thursday, making it the session's worst performer in the S&P 500 and putting on pace for its lowest close in more than seven years, according to Dow Jones Market Data.
Shares are currently down 29% so far this year.
On Thursday, Zoetis reported earnings of $1.53 a share for the first quarter, compared with $1.48 a year ago and below Wall Street's expectation for $1.60 a share. Revenue increased 3% to $2.26 billion, missing the analyst consensus call for $2.3 billion, according to FactSet.
"The first quarter unfolded in a more challenging operating environment than we anticipated. Pet owners demonstrated increased price sensitivity, resulting in a decline in veterinary visits and softer demand for premium innovative products," CEO Kristin Peck said in the earnings release.
As a result, Zoetis lowered its 2026 profit guidance to between $6.85 and $7 a share, from $7.00 to $7.10 a share previously. Wall Street forecasts full-year earnings of $7.03 a share.
The company also downgraded its expectations for full-year sales. now expects 2026 revenue between $9.68 billion and $9.96 billion, down from its previous outlook for sales between $9.825 billion and $10.025 billion. Analysts predict full-year sales of $9.89 billion.
A Stifel analyst team led by Jonathan Block on Thursday wrote the company's first-quarter report is actually "worse than it seems," because Zoetis had benefited from a "realignment" that moved $100 million of operational revenue into the first quarter as the company flipped the calendar.
Taking this into account, the analysts says organic operational revenue growth was well below the consensus view, with "notable weakness" in its pet business segment.
Write to Kit Norton at kit.norton@barrons.com
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(END) Dow Jones Newswires
May 07, 2026 11:47 ET (15:47 GMT)
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